Japan's Q3 GDP is Expected to Have Contracted Significantly
The Japan’s Cabinet Office will announce revised GDP data for the third quarter on Monday, December 10. The world's third-biggest economy is expected to have contracted more sharply than initially estimated in the third quarter, amid a steep drop in capital spending, a series typhoons, a huge earthquake and slow external demand.
Economists forecast the Japan’s GDP to have dropped by an annualized 1.9% in July-September, worse than the preliminary reading of a 1.2% fall. Quarter-on-quarter, Japan’s GDP is expected to fall by 0.5%, compared with the initial estimate of a 0.3% decline.
According to forecasts, capital expenditure fell by 1.6% qoq in Q3, the fastest fall since 2014 and significantly down from the 0.2% decline in the preliminary data.
Earlier, the International Monetary Fund stated, that Japan's gross domestic product could fall by over 25% in the next 40 years as its population declines. The IMF also predicts that Japan's economy will grow 1.1% in 2018 but just 0.9% in 2019.