|
On
a quarter-to-quarter basis, the world’s fourth largest economy
grew 0.7% for its third straight quarter of growth, the Cabinet
Office reported Monday in its preliminary data.
For 2024, the Japanese economy eked out 0.1% growth in
seasonally adjusted real GDP, or gross domestic product, which
measures the value of a nation’s product and service. That's the
fourth straight year of expansion.
Private consumption grew at an annual rate of 0.5% during the
three months through December, holding up while losing momentum.
Exports jumped 4.3%, and capital investment increased 0.5%.
The positive data sent Japan’s benchmark Nikkei 225 higher, as
well as other Asian markets.
Some analysts think the anticipation of President Donald Trump’s
tariffs may have lifted trade.
Unlike the U.S. and some other nations, Japan has been dogged by
deflation, and these lower prices stifle growth. But recent wage
growth has kept deflationary trends in check.
Recent data show inflation is at about the Bank of Japan’s
target of 2%. Higher prices are crimping consumer spending,
which makes up for more than half the economy.
The central bank may move to further raise interest rates, which
were at zero or below zero for years to wrest the economy out of
deflation. It raised its key interest rate to about 0.5% from
0.25% last month, noting that inflation is holding at a
desirable target level. The next monetary policy meeting is in
March.
“Stronger growth may reinforce expectations for the Bank of
Japan to push through with further hikes, while the slowdown in
private consumption growth may be addressed by the prospects of
higher wages ahead,” said Yeap Jun Rong, market strategist at IG.
All contents © copyright 2025 Associated Press. All rights reserved
|
|
