Japan January-March GDP Estimate Likely to Be Revised Up
Tokyo, June 2 (Jiji Press)--The Japanese government is expected to revise up its gross domestic product estimate for January-March, the latest projections by 10 private think tanks suggest.
Their projections averaged an annualized quarter-to-quarter drop of 2.2 pct in price-adjusted real terms, better than a 3.4 pct contraction in the preliminary GDP report for the first quarter of 2020 released by the Cabinet Office last month.
The government agency is scheduled to show revised GDP data on Monday.
All the think tanks came up with the stronger GDP estimates after the Finance Ministry announced Monday that capital investment excluding in software in the quarter increased 3.5 pct from a year earlier on an all-industry basis thanks to solid spending related to urban redevelopment.
But ordinary profits at nonfinancial firms plunged 32.0 pct, the biggest drop since July-September 2009, when the profits tumbled 32.4 pct in the fallout from the collapse of U.S. investment bank Lehman Brothers in 2008, the ministry also reported.
[Copyright The Jiji Press, Ltd.]