Tokyo [Japan], March 9: Japan's economic growth in the October to December quarter was downgraded, owing to private consumption increasing less than previously thought, the government said in a report on Thursday.
According the Cabinet Office, the country's economic expansion was downwardly revised from 0.6 percent to an annualized real 0.1 percent.
On an inflation-adjusted basis, real gross domestic product (GDP) on a quarterly basis was revised down from 0.2 percent to 0.02 percent, the government also said.
Private consumption, which accounts for roughly half of Japan's GDP, slowed from 0.5 percent in the government's preliminary report, to 0.3 percent.
This has been due to soaring inflation resulting in rising price points in shops and supermarkets, as well as energy bills, with the yen's weakness further inflating prices and impacting household spending.
Capital spending, also a key driver of the economy, remained unchanged from its initial reading, dropping 0.5 percent in the October to December period, as rising import costs, also punctuated by the country's weak currency, has seen companies rein in their investment outlays.
Public investment, however, edged higher than a preliminary drop of 0.5 percent, to stand at 0.3 percent in the recording period, the Cabinet Office said.
In terms of nominal GDP, the government said it grew 1.2 percent, downwardly revised from 1.3 percent, and stood at 4.7 percent on an annualized basis, down from a preliminary 5.2 percent.
Source: Xinhua
