Japanese Fourth Quarter GDP Contracted 1.1% annualized

February 13, 2011

The 1.1% drop in GDP last quarter was about half as steep as feared.  Real GDP still advanced 3.9% in 2010, the most since 1990.  The main sources of growth in 2010 came from net exports (1.8 percentage points), personal consumption (1.1 ppts) and inventories (0.6 ppts).  Government spending, residential investment and non-residential investment made positive but smaller contributions to the calendar year growth rate.

Between the third and fourth quarters, personal consumption fell by 2.9%, cutting GDP growth by 1.7 ppts.  Real GDP was 2.2% greater than a year earlier.  The GDP price deflator dropped by 2.1% in 2010 and 1.6% between the fourth quarter of 2009 and 4Q10.

Copyright Larry Greenberg 2011.  All rights reserved.  No secondary distribution without express permission.



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