Japan Jan.-March Demand Shortfall at Annualized 8 T. Yen

Economy

Tokyo, July 10 (Jiji Press)--Japan's supply-demand gap, or the excess of potential supply capacity over demand in the economy, in January-March was minus 1.4 pct, or a demand shortfall of about 8 trillion yen on an annualized basis, according to revised estimates released by the Cabinet Office on Tuesday.

The new estimates reflected gross domestic product data for the first quarter of 2024 that were revised earlier this month based corrections made to the infrastructure ministry's construction statistics.

The Cabinet Office previously estimated that the supply-demand gap was minus 1.0 pct, or an annualized demand shortfall of around 6 trillion yen.

The supply-demand gap is one of the key indicators used by the government to determine whether the country has overcome deflation.

While it remained the same that the estimated gap was in the minus column for the third consecutive quarter, the estimated demand shortfall widened after the latest revision.

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Jiji Press