Japan’s real gross domestic product (GDP) is forecast to have fallen 0.7% from the previous quarter, or an annualized 2.7%, in the July–September period, marking the first contraction in six quarters.
The preliminary Q3 GDP data, due from the Cabinet Office at 0850 JST on Monday, Nov. 17 (2350 GMT / 1950 EDT, Sunday, Nov. 16), are expected to show a decline driven by a pullback in exports, a sharp drop in housing investment and a drawdown in inventories.
However, the slowdown is seen as modest and does not suggest a broad-based deterioration in Japan’s economic fundamentals. Private consumption and business investment are expected to remain resilient, indicating that the underlying strength of the economy is largely intact.

Gross Domestic Product (GDP) is the broadest measure of aggregate economic activity and encompasses every sector of the economy.

Gross domestic product is the all-inclusive measure of economic activity. Investors need to closely track the economy because it usually dictates how investments will perform. Investors in the stock market like to see healthy economic growth because robust business activity translates to higher corporate profits. Bond investors are more highly sensitive to inflation and robust economic activity could potentially pave the road to inflation. By tracking economic data such as GDP, investors will know what the economic backdrop is for these markets and their portfolios.

The GDP report contains a treasure-trove of information which not only paints an image of the overall economy, but tells investors about important trends within the big picture. GDP components such as consumer spending, business and residential investment, and price (inflation) indexes illuminate the economy's undercurrents, which can translate to investment opportunities and guidance in managing a portfolio.