Japanese economic growth came in at -0.5% QoQ versus -0.1% expected and 1.2% prior, per the preliminary readings of the third quarter (Q3) 2023 Gross Domestic Product (GDP) figures.

Furthermore, the Annualized GDP contracted 2.1% versus 0.6% drop and 4.8% expansion prior.

Market reaction

Following the Japanese growth numbers, the USD/JPY pair is up 0.14% on the day at 150.44.

About Japan’s Gross Domestic Product (GDP)

The Gross Domestic Product (GDP), released by Japan’s Cabinet Office on a quarterly basis, is a measure of the total value of all goods and services produced in Japan during a given period. The GDP is considered as the main measure of Japan’s economic activity. The QoQ reading compares economic activity in the reference quarter to the previous quarter. Generally, a high reading is seen as bullish for the Japanese Yen (JPY), while a low reading is seen as bearish.