Analysts: Japan's GDP likely shrank in Jan.-Mar. quarter
Most analysts believe Japan's economy contracted in the January-March period, due to weak private consumption and slow external demand. The government will release gross domestic product figures for the quarter on Friday.
Eight out of 11 private-sector research institutes project the economy shrank in the first quarter of this year.
This would reverse three quarters of growth through the final quarter of 2024.
Three research firms believe private consumption fell due to higher living costs, while eight others project such spending grew, but at around 0.2 percent or less.
Private consumption accounts for more than half of Japan's GDP.
Most researchers say Japan's GDP was hit by the global economic slowdown. This reduced earnings from exports at the same time as imports increased.
However, 10 out of 11 firms believe capital investment grew, citing robust spending on software and semiconductor-related equipment.
The analysts say first quarter GDP was not directly impacted by US tariffs, as the period was before President Donald Trump imposed the levies.
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