Tokyo: Ten private think tanks on average expect Japan’s gross domestic product to have expanded 0.2 pct quarter on quarter in price-adjusted real terms in January-March, or 0.8 pct on an annualized basis, marking the second straight quarter of growth.

Personal consumption, which continues to recover from a slump blamed on the novel coronavirus crisis, is believed to have more than offset a decline in exports reflecting a slowdown in overseas economies.

The Cabinet Office is scheduled to announce preliminary GDP data for the first quarter of 2023 on May 17.

Private spending, which accounts for the largest share of GDP, is projected to have increased 0.4 pct quarter on quarter.

Spending on services was on the rise thanks to a government-backed tourism promotion initiative and the relaxation of movement restrictions related to COVID-19, an official of Mizuho Research & Technologies Ltd. said.

The estimated growth in personal consumption may have partly reflected a series of price hikes for daily necessities.

On the other hand, exports are seen to have fallen 2.5 pct because of slowing overseas economies and a slump in semiconductor demand abroad.

Corporate capital spending is also forecast to have dropped, by 0.3 pct, down for the second straight quarter.

JIJI Press