Japan April-June GDP Growth Estimated at 0.8 Pct

Economy

Tokyo, Aug. 2 (Jiji Press)--Japan's real gross domestic product in April-June is believed to have grown 0.2 pct from the previous quarter, or at an annual rate of 0.8 pct, according to 12 private think tanks' latest estimates.

Despite a turnaround from the previous quarter's GDP decline of annualized 3.8 pct in price-adjusted real terms, the estimated growth rate is low reflecting sluggish personal consumption under the third coronavirus state of emergency.

Specifically, personal consumption, a main engine for economic growth, is estimated to have dropped for the second consecutive quarter, by 0.1 pct on average.

Spending on services shrank in particular, after the state of emergency eventually covered 10 of the country' 47 prefectures, according to the Dai-ichi Life Research Institute.

Meanwhile, capital expenditures are estimated to have turned up 1.9 pct.

[Copyright The Jiji Press, Ltd.]

Jiji Press