Commercial and residential buildings at dusk in Minato district, Tokyo, Japan.
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Preliminary government data shows that Japan’s economic expansion in the fourth quarter beat analyst expectations for quarter-quarter and annualized growth, depending on the growth of exports.
GDP grew 0.7% in the quarter, Economists polled by Reuters expected a 0.3% increase. It has been revised 0.4% in the previous quarter.
Compared with the previous quarter, growth in exports helped increase GDP, while domestic demand contracted slightly.
Japan’s November and October household spending signed 0.4% and 1.3% years, respectively, but rose 2.7% in December, but has seen expectations from economists who voted for Reuters since July 2024 2.7%.
Nevertheless, Citi economist Katsuhiko Aiba warned earlier this month that consumer spending will remain weak in the first quarter and a full recovery is expected after the second quarter.
He said that despite the government’s energy subsidies recovered, real wage growth could also be negative in the first quarter due to the perpetual inflation of the depreciation of the Japanese yen.
The GDP figures on Monday were up 0.5% against the backdrop of Japan’s central bank, the highest level since October 2008 and provide more room for insisting on currency tightening.
Each year, GDP grew by 2.8%, surpassing Reuters’ estimate of 1%.
Japan’s economy grew 1.2% year-on-year in the fourth quarter, while the economy grew 0.6% in the third quarter.
Although growth in the fourth quarter exceeded expectations, the rate of full-year GDP growth slowed to 0.1%, a sharp decline from 1.5% growth in 2023.
this Nikkei 225 The data fell 0.29% after the release, while the yen rose 0.2% against the US dollar at 152.02.
