Fx trading news: Japan ’s fourth quarter GDP fell by 7.1% year-on-year, the largest decline since the second quarter of 2014!
2020-03-09 12:36 from：CAPSTONE author：Jack
Capstone forex trading news: On Monday, according to the latest data released by the Cabinet Office of Japan, Japan ’s fourth quarter real GDP annualized quarterly rate correction was -7.1, which was less than market expectations. Analysts said that Japan ’s economy shrank in the fourth quarter of last year more than originally estimated, and as the epidemic of the new crown virus is getting worse, people are more worried about the possibility of Japan entering a recession in the first quarter.
Data show that Japan ’s fourth quarter GDP fell by 7.1% year-on-year, exceeding the previous report of 6.3%, and the largest decline since the second quarter of 2014. Capital expenditures fell by 4.6% month-on-month, exceeding the previously reported 3.7%. Private consumption fell by 2.8% month-on-month, which was basically the same as the initial value. This shock comes at a time when people's concerns about Japan's economic weakness this year have intensified. The new coronavirus epidemic has damaged Japan's output and tourism, exacerbating concerns that the Japanese economy may decline for two consecutive quarters and fall into a technical recession. .
As data begin to show how public health events affect the world's third largest economy, analysts expect Japan to fall into a deeper recession. The median estimate of a survey showed that just two weeks ago, analysts also thought that Japan's GDP would contract by only 0.25% in the first quarter.
People familiar with the matter said that after the epidemic changed the economic situation, the Bank of Japan may discuss changing its overall economic perspective at a meeting from March 18 to 19. An assessment of the downturn in the economy usually does not translate into additional actions by the Bank of Japan, especially if its easing plans have accumulated side effects. However, coupled with a stronger yen, it could put pressure on the Bank of Japan to force them to consider increasing easing measures.
Why Choose Capstone Online CFD Trading?
* EURUSD Avg spread of 0.1 pips is the best in the world
* Starting Deposit $100
* Leverage up to 1:400
* Transfer your funds securely with 0% Commission
* Average execution speeds of under 45ms*
* Our diverse and proprietary liquidity mix keeps spreads tight 24/5