The Gross Domestic Product is a comprehensive measure of a Japan 's overall production and consumption of goods and services. GDP serves as one of the primary measures of overall economic well-being. GDP announcements generally conform to expectations as the number comes out after most Japanese production figures that lead to overall GDP have already been released. Although releases that are out of line with expectations are rare, unanticipated GDP growth can move markets simply because of its significance as an economic indicator.

Robust GDP growth signals a heightened level of economic activity, such activity often benefits trade flows and encourages foreign investment that can lead to higher demand for the Yen. At the same time, economic expansion raises concerns about inflationary pressures which may lead monetary authorities to increase interest rates. Thus better than expected GDP figures are generally bullish for the Yen, while negative readings are generally bearish.

Technically, Gross Domestic Product is calculated in the following way:

GDP = C + I + G + (EX - IM)

where
C = private consumption
I = private investment
G = government expenditure
EX = exports of goods and services
IM = imports of goods and services

Japanese GDP figures are released quarterly as expenditure-based estimates. The headline figures are annualized percentage changes in real and nominal GDP.

Relevance : Tends to move markets on release
Release schedule : 23:50 (GMT); quarterly, in the second month following the end of the quarter.
Revisions schedule : The second preliminary report comes a month after the first, and the final report is released at the end of the fiscal year, with a two year lag.
Source of report : Economic and Social Research Institute ( Japan )
Web Address : http://www.esri.cao.go.jp/index-e.html
Address of release : http://www.esri.cao.go.jp/en/sna/menu.html#93sna
AKA : Preliminary Estimated GDP