Japan economy grows 2.8 % in 4th quarter

Housing investment rose 0.1 %, while public investment declined 0.3 % on soaring labour materials costs.

Exports rose 1.1 %, driven by growing patent sales and higher spending by visitors to Japan. Imports fell 2.1 %, their first drop in three quarters, due mainly to decreases in medicines and electronic parts.

Domestic demand made a negative contribution of 0.1 percentage point to the quarter-to-quarter GDP growth rate of 0.7 %, while external demand made a positive contribution of 0.7 points.

Takeshi Minami of Norinchukin Research Institute Co. said that private consumption growth slowed while falling imports made the biggest contribution to the country’s economic growth.

The data underscore “weakness in domestic demand” and the economy is “not in a good shape,” he said.

[Copyright The Jiji Press, Ltd.]