According to Jinshi, the Japanese government said it would revise the GDP data for the first quarter to reflect the revision of construction order data and announce the revision results on July 1. Some analysts said that the Japanese government's rare unplanned revision of GDP data may lead to a significant downward revision of GDP, which may affect the Bank of Japan's economic growth forecast and the timing of the next interest rate hike.
Yoshiki Shinke, senior executive economist at Dai-ichi Life Research Institute, expects revised data to show Japan's economy shrank 2.7% year-on-year in the first quarter, much worse than the current estimate of a 1.8% contraction. This could force the Bank of Japan to cut its growth forecast at its July 31 monetary policy meeting and make it difficult to justify a rate hike.