Japan: Lower 4thQ,2009 But Still Ok

Japanese gross domestic product (GDP) grew a revised 0.9 pct in October-December from the previous quarter, against economists’ median forecast for a 1.0 pct expansion.

The downward revision from a preliminary rise of 1.1 pct was due to capital expenditure rising less than initially reported and private inventories subtracted from growth.

The revised GDP deflator stood at a record low of minus 2.8 pct in the fourth quarter compared with the same period a year earlier. That compares with a preliminary reading of minus 3.0 pct.

The revised GDP figure translates into annualised growth of 3.8 pct in real, price-adjusted terms, against an initial reading of a 4.6 pct annualised increase.

We do hope the second largest global economy will gain traction and move forward more vibrantly in 2010.