Following a dramatic weakening of the Yen over the course of the fourth quarter, the latest figures pertaining to gross domestic product showed that the move helped buoy economic activity for the period. Exports rose by 2.60% quarter over quarter as external demand rose while import managed to climb for the first time in a year. Aside from trade, a major contributor to the latest growth figures was also government expenditures which increased by 0.40% during the period.
However, the latest figure is not without some concerning developments, evidenced by flat consumer spending and falling public investments. Private non-residential investments managed to show some upside, but it was not enough to thwart a slowing pace of expansion after fourth quarter growth tapered to 0.20% from 0.30% a period earlier. The Yen retreated after the announcement, with USDJPY briefly retaking 114.000 before pulling back.
Japanese Growth Misses Estimates
Daily Analysis - 13/02/2017