The severe winter expected this year is expected to boost total spending on goods and services by 656.7 billion yen, adding 0.13 percentage point to real gross domestic product in fiscal 2005, a think tank said Thursday.
Dai-ichi Life Research Institute, a unit of Dai-ichi Mutual Life Insurance Co., based its projection on an expected increase in spending on fuel, heating equipment and clothing.
The institute conducted an analysis of correlations between household expenditures, imports and temperature fluctuations between December and January over the 15 years since fiscal 1990.
It found that household expenditures in the two-month period rose a real 1.4 percent for every one-degree drop in average temperature.
It also found that imports of oil and other goods tended to rise 3.4 percent on average for every one-degree drop.
As for GDP, which measures the total goods and services produced within a nation's borders, the institute saw rises in imports and falls in transportation and telecom-related expenses during times of severe cold and snow.
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