Japan's Economy Surpasses Forecasts with 2.8% Annualized Growth in Fourth Quarter

Stronger exports, moderate consumption, and increased capital investment drive Japan's economic expansion, exceeding market expectations.

Japan's GDP grew 2.8% on an annualized basis in the October-December quarter, surpassing the 1.0% forecast by analysts.
Quarter-on-quarter growth reached 0.7%, outperforming the predicted 0.3%, marking the third consecutive quarter of expansion.
Exports surged by 4.3% during the fourth quarter, supported by steady trade activity despite global economic uncertainties.
Private consumption increased by 0.5% on an annualized basis, though it showed signs of slowing due to rising inflation and higher prices.
The Bank of Japan, having recently raised interest rates to 0.5%, may consider further monetary tightening as inflation stabilizes around its 2% target.