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Japan's 4th-quarter growth revised down to 3.8 per cent

11 March 2010 08:31 (UTC+04:00)
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Japan's economy expanded at an annualized pace of 3.8 per cent in the fourth quarter, revised down from a preliminary estimate of 4.6 per cent, as companies cut back on their capital spending and inventories, the government said Thursday, dpa reported.

   The growth in Japan's gross domestic product (GDP) in the October-to-December quarter corresponded to an expansion of 0.9 per cent in the previous quarter, which was also revised down from an initially reported 1.1- per-cent rise.

   Keisuke Tsumura - an official at the Cabinet Office, which released the figures - said that despite the downward revision, the latest GDP figures showed a diminished possibility of the world's second-largest economy falling into a double-dip recession.

   "From now, the self-sustainable power in the economic recovery would be the key to watch," Tsumura said.

   The Cabinet Office revised down the closely watched capital investment figure in the fourth quarter to a 0.9-per-cent rise from an initial 1 per cent.

   Moreover, falling corporate inventories pushed down the GDP by 0.1 percentage point, compared with an initial reading of a positive contribution of the same amount, the office said.

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