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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.

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FILE - People crowd the famed "Ameyoko" shopping street on New Year's Eve in Tokyo, Tuesday, Dec. 31, 2024. (AP Photo/Hiro Komae, File)
FILE - Cars for export are loaded onto a cargo ship at a port in Yokohama, near Tokyo, Nov. 2, 2021. (AP Photo/Koji Sasahara, File)
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Overview

  • 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.