text: Japans gross national product (gnp) rose a real 1.2 pct in the January/March quarter after a downwardly revised 0.7 pct increase in the previous three months the Economic Planning Agency said. The October/December rise was originally put at 0.8 pct. For the fiscal year ended last March 31 gnp rose 2.6 pct after a 4.3 pct increase in 1985/86. Last years performance was the worst since 1974/75 when gnp contracted by 0.4 pct and was below the governments revised three pct forecast. Economists said the strong yen was largely to blame for the slowdown in economic growth in 1986/87. Domestic demand increased 0.7 pct in the January/March quarter and 4.3 pct in the fiscal year compared with growth of 0.6 pct in October/December and 3.7 pct in 1985/86. The annualized growth rate in the January/March quarter accelerated to 4.9 pct from 2.9 pct in October/December. In nominal terms gnp rose 0.7 pct in January/March after a 0.5 pct October/December rise reflecting lower prices. Domestic demand contributed 0.7 percentage point to real gnp growth in January/March while foreign trade added 0.5 point. In October/December domestic demand contributed 0.6 point while foreign trade added 0.2 point. Of the 0.5 point contribution of foreign trade to gnp last quarter rising exports accounted for 0.3 point and falling imports contributed 0.2. Total export volume rose 2.0 pct quarter-on-quarter in January/March while imports fell 1.2 pct. Of the 0.7 point contribution of domestic demand to January/March gnp growth the private sector accounted for 1.1 point while the public sector knocked off 0.4. The private sector contribution included 0.4 point for corporate capital outlays and 1.0 for consumer spending while destocking subtracted 0.3 point. In 1986/87 domestic demand contributed 4.1 percentage points to growth while foreign trade knocked off 1.5 points. In 1985/86 the domestic demand contribution was 3.6 points and foreign trade 0.7 point. REUTER
target: JAPAN GNP RISES 1.2 PCT IN JANUARY/MARCH