Japanese Yen Shrugs Off Disappointing GDP Data
- Japan’s GDP grew 0.3% in the third quarter, falling short of analysts’ forecasts
- Local bond yields and the Japanese Yen shrugged off the disappointing outcome
- Japanese Economy MinsterMotegi argued that economic recovery is continuing
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The Japanese Yen proved to be resilient following disappointing GDP data that showed the economy added only 0.3 percent in the third quarter versus 0.4 expected. Annualized, seasonally adjusted quarterly growth registered at 1.4 percent, underperforming analysts’ forecasts calling for an increase of 1.5 percent and marking a notable slowdown from the previous quarter’s (admittedly upgraded) 2.6 percent gain.
Despite the soft showing, the Japanese Yen and local bond yields saw little to no change following the data. Japan’s Economy Minister Toshimitsu Motegi spoke briefly following the release, saying the government’s position is that “Japan’s recovery is continuing”. Furthermore, he noted that domestic performance has been hindered by temporary factors while overseas demand is positive. The Bank of Japan will not be meeting this month, and will have its final policy conclave of the year on December 21.