The Cabinet Office of Japan has downgraded its estimate of gross domestic product (GDP) growth for the fourth quarter of 2022 due to a slowdown in private consumption. The revised figures show that GDP grew by only 0.1%, down from the initial estimate of 0.6% and below analysts’ expectations.
According to the Cabinet Office, the slowdown in GDP growth was due to private consumption, which rose by only 0.3% in the fourth quarter of 2022. This was lower than the initial estimate of 0.5% growth and had a significant impact on the overall GDP figure.
The government had initially predicted that GDP growth would be 0.8% in the fourth quarter of 2022, but the revised figures suggest that private consumption slowed more than expected. Capital expenditure, a key component of GDP, fell by 0.5%, unchanged from initial estimates. Public investment also fell by 0.3%, less than the initial estimate of a 0.5% decline.
The weaker-than-expected figures have raised concerns about Japan’s economic recovery, which has been hit hard by the COVID-19 pandemic. Japan’s economy had shown signs of improvement in recent months, but the latest figures suggest that the recovery may be slower than expected.
The government has vowed to take measures to support the economy, including boosting public spending and providing financial support to small and medium-sized businesses. However, the outlook for the Japanese economy remains uncertain, with concerns about the impact of the pandemic and global economic conditions.