Q1 2009 GDP - 4% on Quarter or -15.2% Annualized

Japan's real GDP fell 4.0% in Q1 2009 from the previous three months, Cabinet Office data showed. The decrease translates into -15.2% on an annualized basis. This is the sharpest quarterly fall since 1955 and marks the first-ever four-quarter run of declines. The Government also revised down figures for Q4 2008. GDP in that quarter fell 3.8% from the previous three months, or an annualized 14.4%, rather than sliding 3.2% on a quarter, or an annualized 12.1%, the data showed.

With these, the real GDP growth for FY 2008 (12 months ending March 2009) fell to -3.5%.

The decline comes as business and consumer spending fell sharply along with exports. However, the May analyst survey shows 37 economists on average expect +1.1 % growth (annualized basis) for Q2 2009, suggesting that the economy has probably bottomed out in Q1 2009. The same economists projected -1.5 % growth for Q2 2009 in the last survey conducted in April.