Japanese GDP accelerated sharply to start 2016

Photo by Julian Finney/Getty Images

The Japanese economy grew faster than first thought in the first three months of the year.

According to data released by the Japanese government on Wednesday, real GDP grew by 0.5% in the March quarter, slightly ahead of the preliminary estimate of 0.4% released in May.

The figure was in line with economic forecasts, and saw the seasonally adjusted annual rate (SAAR) rise to 1.9%, the fastest growth seen since the first quarter of last year.

Previously growth had been reported at 1.7%.

Over the quarter private demand contributed 0.2 percentage points (ppts) to growth, up from 0.1ppts reported previously, thanks largely to an upward revision to household consumption which added 0.4ppts to GDP.

Offsetting that increase, private non-residential investment detracted 0.1ppts from growth, a slight improvement on the 0.2ppts decline reported previously. Private inventories also detracted a further 0.1ppts from GDP.

As a result of the tweaks, total domestic demand added 0.3ppts to the quarterly GDP figure.

On the external front, net exports contributed the final 0.2ppts to growth, unchanged from the previous estimate. An increase in exports and decline in exports contributed 0.1ppts apiece.

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