The Japanese Gross Domestic Product released by the Cabinet Office has been released as follows:
- Q1 Revised real gdp -0.1%QoQ (prelim -0.2%, Reuters poll -0.3%).
- Revised Real GDP annualised -0.5% (prelim, poll -1.0%).
- Revised Capex -0.7% QoQ (prelim +0.5%, poll +0.3%).
- Revised private consumption +0.1% QoQ (prelim -0.0%).
- Revised net external demand contribution to GDP -0.4 pct point (prelim -0.4 pct point).
- Revised domestic demand contribution +0.3 pct point (prelim +0.2 pct point).
Revised government data showed on Wednesday that Japan's economy shrank an annualised 0.5% in the first quarter, slightly better than the initial estimate of a 1.0% contraction.
Consumption remained resilient in the face of resurgent COVID-19 infections.
The yen is on the backfoot but the data will have little impact. USD/JPY is higher in the session regardless by 0.18% so far at 132.80.
About the Gross Domestic
The GDP released by the Cabinet Office shows the monetary value of all the goods, services and structures produced in Japan within a given period of time. GDP is a gross measure of market activity because it indicates the pace at which the Japanese economy is growing or decreasing. A high reading or a better than expected number is seen as positive for the JPY, while a low reading is negative.