The world's third-largest economy is expected to grow at a much slower pace in the third quarter of this year, analysts say, as weaker export demand weighs on growth.
According to a Reuters poll, Japan's gross domestic product will likely rise 1.7 percent annualized rate in Q3, a marked fall from the second quarter's 3.8 percent rise, and the first-quarter's 4.1 percent rise.
The blip might not be welcomed by Japanese policy makers who late last year launched an ambitious raft of economic policies designed to drag the economy out of over a decade of deflation. 'Abenomics,' as the policies are known, has proven successful so far, helping haul the economy out of recession in 2012 posting three consecutive quarters of growth since.
(Read more: Will 2% inflation be enough for Japan?)
According to Long Hunhua Wang, Japan economist at RBS, the main factor set to drag down the economy's third quarter growth is a sharp fall in demand for exports. He forecasts net exports will fall 0.6 percent quarter on quarter in Q3, compared with a 0.3 percent quarter-on-quarter rise in the second quarter.
Royal Bank of Scotland has forecast, 2.5 percent on year for Thursday's GDP data and a 0.2 percent quarter-on-quarter rise.
"Domestic demand remains robust and there is momentum there, but overseas export demand is sluggish, and we still haven't seen a clear influence from the yen depreciation so far," he added.
Japan's domestic currency has weakened near 15 percent against the U.S. dollar this year, and traded close to the psychologically important 100 to the yen level on Wednesday at 99.53 to the dollar.
"In the past the Japanese yen depreciation has stimulated exports and increased volumes, but hasn't happened as clearly this time, mainly because overseas demand is sluggish and the Japan's competitiveness has decreased," he added.
(Read more: The verdict on Abenomics, one year on)