Link Securities | According to data from the Japanese government cabinet, Japan’s gross domestic product (GDP) increased by 0.2% in 4Q2022 compared to 3Q2022, compared to a revised contraction of 0.3% in the previous quarter, although the reading was below the 0.5% growth expected by the analyst consensus, which was in line with the preliminary reading of the figure. Private consumption rose after the removal of tight border controls, and despite the drag from the rising cost of living (0.5% vs 0.0%; 3Q2022), while government spending accelerated (0.3% vs 0.1%; 3Q2022). The trade balance contributed positively with exports rising for the fifth consecutive quarter (1.4% vs 2.5%), while imports fell for the first time since 3Q2021 (-0.4% vs 5.5%; 3Q2022). Meanwhile, business investment fell, after having risen in the previous two quarters (-0.1% vs 0.3%; 3Q2022).
For the year as a whole, GDP rose 1.1%, compared to 2.1% growth in 2021, as the Japanese economy recovered from the Covid-19 pandemic.