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Japan’s economic growth beats forecasts on robust exports, solid consumption
Posted on February 17, 2025 |
Japan’s economy expanded by 2.8% annually in the October-December quarter, supported by strong exports and steady consumer spending.
The economy posted 0.7% growth from the previous quarter, marking three consecutive quarters of expansion.
In 2024, Japan’s real GDP, adjusted for seasonal factors, grew by 0.1%, extending its growth streak to a fourth year.
Private consumption increased by 0.5% annually in the last quarter of 2024, despite signs of slowing momentum.
Exports rose by 4.3%, while capital investment recorded a 0.5% gain during the same period.
Some analysts believe trade activity strengthened due to anticipation of tariffs from President Donald Trump.
Rising wages helped mitigate Japan’s deflationary challenges, with inflation nearing the Bank of Japan’s 2% target, though higher prices have pressured consumer spending.