ID :
369571
Tue, 06/02/2015 - 04:54
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Economists Project Upward Revisions to Japan GDP Growth

Tokyo, June 1 (Jiji Press)--Economists expect upward revisions to Japan's gross domestic product in January-March, estimates released by 10 private-sector think tanks showed Monday. The 10 think tanks on average now project the country's GDP to have increased 0.7 pct quarter on quarter in price-adjusted real terms, against a 0.6 pct rise shown in preliminary data announced by the Cabinet Office last month. On an annualized basis, the think tanks expect the GDP to have grown 2.7 pct, up from the preliminary reading of 2.4 pct growth. Their estimates ranged from a rise of 2.0 pct to an increase of 3.2 pct. The government agency will release revised GDP data on June 8. Combined capital expenditures by Japanese nonfinancial companies in January-March rose 7.3 pct from a year before, according to data released by the Ministry of Finance on Monday. Based on the MOF data, all of the 10 think tanks expect upward revisions to capital expenditures in the upcoming revised GDP report, projecting a 2.1 pct rise in capital spending on average quarter on quarter, against a 0.4 pct increase in the preliminary report. Although the preliminary GDP data showed that private-sector inventories pushed up the overall GDP growth by 0.5 percentage point, the think tanks now expect a smaller contribution. The Daiwa Institute of Research said that this is a positive sign for the economy as a lower inventory figure can be interpreted as illustrating progress in inventory adjustments. END

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