Imports surged due to firm domestic demand as well as the front-loaded increase in demand prior to the consumption tax hike, thereby pushing down the headline GDP growth rate.
However, focusing on domestic demand excluding net external demand, the economy did not see much of a slowdown given that this demand kept growing at around 3 percent on an annual basis throughout the calendar year. As GDP growth for the second half of 2013 was weaker than expected, this will have a smaller carry-over effect on GDP growth for fiscal 2014.