Business & Economy

Japan maintains 4.8 percent decline in GDP in revised 2020 data

Tokyo, Mar 9 (efe-epa).- Japan’s economy contracted by 4.8 percent in 2020, according to revised data published Tuesday by the government, which maintained its initial estimate, although it reported a lower investment and revised down the growth in the last quarter of the year.

The revised report released by the Cabinet Office on Tuesday confirms the first contraction in the country’s GDP since the record 5.7 percent decline it registered in 2009.

That year, the Asian country’s economy was impacted by the financial crisis sparked by the collapse of Lehman Brothers, and last year by the coronavirus pandemic.

While the absolute figure for the entire year remains unchanged, the revised statistics indicate that companies’ capital investment decreased 5.9 percent from the previous year, 0.1 percent more than originally estimated, while public investment increased by 3.6 percent, also 0.1 percent more than the earlier estimate.

The Japanese government revised down GDP growth by 0.2 percent between October and December, from 3 percent to 2.8 percent year-on-year.

The GDP in the fourth quarter of the year contracted by 1.4 percent from the same period of 2019, while in the third quarter the year-on-year slowdown was 5.8 percent.

This slowdown in economic growth between October and December last year was mainly due to the downward revision of the recovery in domestic and private demand, which both increased by 1.7 percent, compared to the 2 percent estimated in the preliminary data.

The government also revised corporate investment down from a growth of 4.5 percent to a 4.3 percent increase.

Government consumption was also revised down, from an increase of 2 percent to 1.8 percent.

On the other hand, the increase in public investment was higher than initially estimated, 1.5 percent compared to the 1.3 percent previously reported. EFE-EPA


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