The Japanese economy in the fourth quarter of 2024 demonstrated such growth rates that exceeded preliminary expectations regarding the degree of intensity of the upward dynamic of this indicator.
The mentioned result became a fact of reality existing in the space of the economic system of the specified Asian country, as part of the impact of factors such as increased business spending, unexpected rising consumption, and shoring up the central bank’s position in the context of further interest rates hikes.
In the fourth quarter of 2024, Japan’s gross domestic product (GDP) showed growth of 2.8% year-on-year. This is evidenced by the preliminary data published on Monday, February 17th.
At the same time, the average forecast of experts interviewed by the media predicted that the Asian country’s GDP would grow by 1% in the fourth quarter of 2024.
Against the background of positive data on the dynamic of the Japanese economy, Tokyo’s Nikkei stock benchmark and the yen showed an increase.
Experts noted that the headline figure for the Asian country’s GDP was flattered partly by a fall in imports, which improved net trade.
Kazutaka Maeda, an economist at Meiji Yasuda Research Institute, said details of the results indicate that the economy was not as strong as the headline number suggests.
The annualized increase in Japan’s GDP follows a revised 1.7% growth in the third quarter of 2024 and translates into a quarterly rise of 0.7%.
Private consumption, which accounts for more than half of the economic output, grew by 0.1% in the last three months of the past year. It is worth noting that the market’s preliminary estimate predicted that this indicator would show a 0.3% drop.
Capital spending, the main driver of private demand-led growth, rose by 0.5% in the fourth quarter of 2024. At the same time, the preliminary market estimate predicted that this indicator would increase by 1%.
Japan’s Economy Minister Ryosei Akazawa said the gradual economic recovery is expected to continue.
As we have reported earlier, Bank of Japan Raises Interest Rates.
