Jul-Sep 2024 1st Preliminary GDP Estimate
Real GDP achieves positive growth for second consecutive quarter as private consumption continues to increase
November 15, 2024
Summary
◆The real GDP growth rate for Jul-Sep 2024 (1st preliminary est) was up by +0.9% q/q annualized (+0.2% q/q). While various factors brought negative influence on economic activity, such as continued price highs, some factory shutdowns due to a typhoon, and fears of a major earthquake, private consumption still achieved relatively high growth backed by the improved household income environment and provided a boost to real GDP.
◆Our outlook for the real GDP growth rate in the Oct-Dec period of 2024 sees growth at around +2% q/q annualized (around +0.5% q/q) bringing positive growth for three consecutive quarters with continued recovery in private demand including private consumption. Various growth factors are seen, including normalization of production for motor vehicles, which is expected to bring an increase in production, continued improvements in the income environment, a strong appetite for capex spending on the part of corporations, and a comeback for inbound consumption.
Daiwa Institute of Research Ltd. reserves all copyrights of this content.
Copyright permission of Daiwa Institute of Research Ltd. is required in case of any reprint, translation, adaptation or abridgment under the copyright law. It is illegal to reprint, translate, adapt, or abridge this material without the permission of Daiwa Institute of Research Ltd., and to quote this material represents a failure to abide by this act. Legal action may be taken for any copyright infringements. The organization name and title of the author described above are as of today.