Overview

• Japan's Cabinet Office revised Q4 2024 GDP growth to an annualized 2.2%, down from the initial 2.8% estimate.
• The revision reflects weaker private consumption and a larger-than-expected decline in inventories.
• Capital expenditure was revised slightly upward to 0.6%, indicating some strength in private demand.
• Household spending in January rose 0.8% year-on-year, falling short of the predicted 3.6% increase, with a sharp 4.5% month-on-month decline.
• The updated GDP figures may impact the Bank of Japan's upcoming policy meeting, as it evaluates the pace of economic growth and recent interest rate changes.