Japan GDP contraction was finalized at -0.6% qoq in Q1, better than earlier estimate of -0.9% qoq, marginally missed expectation of -0.5% qoq. In annualized term, GDP contracted -2.2%, revised up from -3.4%. The upward revision was largely thanks to capital expenditure, which rose 1.9% qoq, reversing from a preliminary -0.5% qoq decline.
The data, nevertheless, confirmed that Japan was already in recession, with -1.8% qoq, -7.1% annualized GDP contraction back in Q4. The slump is expected to deepen again in Q2 with coronavirus pandemic impacts. Another -9% annualized contraction could be seen in Q2, reflecting the worst economic crisis since WWII.
Also released form Japan, current account surplus narrowed to JPY 0.25T in April versus expectation of JPY 0.33T. Bank lending rose 4.8% yoy in May versus expectation of 3.2% yoy.Japan
