Japan's GDP to increase 0.4% in Q4

Global domestic demand is likely to boost growth.

Moody’s Analytics reported that Japan’s GDP is likely to increase by 0.4% QoQ mainly due to high global domestic demand in 4Q2017.

Exports are expected to add 0.2 percentage points to December’s GDP growth, remaining as the country’s main growth engine.

Accounting for 60% of total GDP, consumption is also forecasted to rise, which is likely to give 0.1% percentage point to the country’s GDP growth. Business investment is also expected to contribute another 0.1 percentage point.

For the full year 2017, GDP growth is forecasted to increase to 1.6%, which is driven by improved global demand, a tech cycle upswing, and a cheaper yen, Moody’s said.

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