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Japan’s GDP grew at 2.8% annually from October 2024 to December 2024, significantly surpassing consensus analyst estimates and marking a third consecutive quarter of expansion.
Inflation-adjusted GDP expanded to 0.7% by comparison, according to a quarter of inflation-adjusted GDP, compared to a preliminary report released by the Cabinet Office on Monday, according to data from analysts surveyed by Reuters. Under, the median growth is expected by 0.3%.
Japan’s total GDP figure was further boosted by company spending, which rose 0.5% in the quarter.
The yen rose 0.3% to 151.89 yen.
Despite the revision, GDP growth figures show that Japan’s economic situation is still fair despite the Bank of Japan’s “normalization” monetary policy last year and the start of a cycle of rising interest rates.
In January, the BOJ raised the exchange rate to about 0.5% – the highest level in 17 years – and said it was as inflation became deeply rooted.
Now, most economists want sheds to increase at least once in 2025, with many pointing to the July central bank meeting as the most likely date.
Several economists predicting GDP growth will drop to an annual growth rate of about 1% in the fourth quarter, and expect overall consumption to be delayed as record rice prices and higher weather are increasing high. clothing.
Private consumption accounts for about half of Japan’s economic output, up 0.1% in the quarter, which has put most analysts in the expectation of contraction.
On Friday, the government will release the January reading of the growth in consumer prices nationwide. Analysts at Goldman Sachs expect the new core index, excluding fresh food and energy, will show inflation rising by 2.6% in years, a slight acceleration from December.
The high price of rice is not counted as fresh food and has begun to push up the cost of rice, including processed food and restaurants.
