Gross domestic product grew an annualized 11.7% from the prior quarter in the three months through December, the Cabinet Office reported Tuesday in figures that were a touch weaker than an earlier estimate. Economists had forecast a revised growth rate of 12.6%.
Separate reports showed household spending fell at the start of the resumed emergency by a worse-than-expected 6.1% in January from a year earlier.
What Bloomberg Economics Says…
“Looking ahead to 1Q, we expect a sharp decline in GDP as a result of the latest state of emergency … When it’s lifted, the economy could see another sharp pickup, propelled by pent-up demand and consumers with excess savings — assuming the outbreak is brought under control in 1Q.”
— Yuki Masujima, economist
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