JAPAN GNP RISES 1.2 PCT IN JANUARY/MARCH
Japan's gross national product (gnp) rose
a real 1.2 pct in the January/March quarter after a downwardly
revised 0.7 pct increase in the previous three months, the
Economic Planning Agency said.
    The October/December rise was originally put at 0.8 pct.
    For the fiscal year ended last March 31, gnp rose 2.6 pct,
after a 4.3 pct increase in 1985/86. Last year's performance
was the worst since 1974/75, when gnp contracted by 0.4 pct,
and was below the government's revised three pct forecast.
    Economists said the strong yen was largely to blame for the
slowdown in economic growth in 1986/87.
    Domestic demand increased 0.7 pct in the January/March
quarter and 4.3 pct in the fiscal year, compared with growth of
0.6 pct in October/December and 3.7 pct in 1985/86.
    The annualized growth rate in the January/March quarter
accelerated to 4.9 pct, from 2.9 pct in October/December.
    In nominal terms, gnp rose 0.7 pct in January/March, after
a 0.5 pct October/December rise, reflecting lower prices.
    Domestic demand contributed 0.7 percentage point to real
gnp growth in January/March, while foreign trade added 0.5
point. In October/December domestic demand contributed 0.6
point, while foreign trade added 0.2 point.
    Of the 0.5 point contribution of foreign trade to gnp last
quarter, rising exports accounted for 0.3 point and falling
imports contributed 0.2.
    Total export volume rose 2.0 pct quarter-on-quarter in
January/March, while imports fell 1.2 pct.
    Of the 0.7 point contribution of domestic demand to
January/March gnp growth, the private sector accounted for 1.1
point while the public sector knocked off 0.4.
    The private sector contribution included 0.4 point for
corporate capital outlays and 1.0 for consumer spending, while
destocking subtracted 0.3 point.
    In 1986/87, domestic demand contributed 4.1 percentage
points to growth while foreign trade knocked off 1.5 points.
    In 1985/86, the domestic demand contribution was 3.6 points
and foreign trade 0.7 point.
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