Another False Positive: Japan’s Q1 GDP Down 1.3% Excluding Import Collapse’s “Add” To GDP

It doesn’t give a very good impression of overall Japanese demand. It’s not even resilience. In GDP accounting, though, negative imports are positive especially as a second derivative where the calculations come from. As a result, the big drop in imports “contributes” 3.4 percentage points to the 2.1 percent annualized gain.