Japan’s economy expanded by 0.7% in the fourth quarter, beating economists’ expectations of a 0.3% rise. On an annualized basis, GDP grew 2.8%, exceeding forecasts of a 1% increase. The growth was driven by a surge in exports, which helped boost the economy despite weak domestic demand.
Full-year GDP growth slowed to 0.1%, a significant decline from the 1.5% growth seen in 2023. However, the fourth-quarter growth offers more room for Japan’s central bank to stick with monetary tightening, as it has raised interest rates to their highest level since October 2008.
Analysts note that the economy’s expansion was largely due to revisions to historical data and is not sustainable without strong domestic demand. Consumer spending remains weak, and experts forecast a slower recovery in the first half of 2025. The yen strengthened after the data release, but the Nikkei 225 fell 0.29% as investors remained cautious about the economy’s prospects.
Source: https://www.cnbc.com/2025/02/17/japan-q4-gdp-growth.html