Japan third quarter GDP revised upwards. But the contraction is confirmed

Japan’s GDP for the third quarter contracted at an annualized pace of 0.8%. However, GDP beat analysts’ expectations, which were for a greater contraction of 1.1%.

The figure was also revised upwards, given that the preliminary estimate released in November referred to a drop of 1.2%.

The upward revision is due to the slightly higher strength of domestic demand, which however still remains weak in the recovery path from the Covid restrictions previously launched in Japan.

Adjusted for inflation, Japan’s GDP contracted on a quarterly basis by 0.2%, revised upwards from the initially expected contraction of -0.3%.