JAPAN ECONOMY EXPECTED TO SHRINK IN Q1 DUE TO WEAK CONSUMPTION

The decline followed growth of 0.4% annualised in the last three months of 2023, with the main pillars of GDP collapsing and leaving no growth engine for the January-March quarter. "The trend of thrifty consumers remains strong due to rising living costs likely being exacerbated by the yen weakening," said Takeshi Minami, chief economist at Norinchukin Research Institute, who predicted the overall economy would contract at 1.2% annualised in the January-March period.

The decline in Japan's economy followed a growth of 0.4% annualized in the last three months of 2023. The main pillars of GDP collapsed, leaving no growth engine for the January-March quarter. Takeshi Minami, chief economist at Norinchukin Research Institute, noted that the trend of thrifty consumers remains strong due to rising living costs, likely exacerbated by the weakening yen. Minami predicted that the overall economy would contract by 1.2% annualized in the January-March period.

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