😎 Summer Sale Exclusive - Up to 50% off AI-powered stock picks by InvestingProCLAIM SALE

Japan GDP revised higher for Q4, economy ducks recession

Published 03/11/2024, 08:06 AM
© Reuters.

Investing.com-- Japan avoided a recession in the fourth quarter, a revised gross domestic product reading showed on Monday, aided chiefly by increased company spending on new facilities and equipment.

Revised figures for the October-December quarter showed GDP grew 0.1% quarter-on-quarter, against a prior reading which showed a 0.1% contraction. The prior quarter’s figure was also improved slightly to a fall of 0.7% from 0.8%. 

Year-on-year, GDP grew 0.4%, revised up from a contraction of 0.4%, while also improving substantially from a 2.9% slide in the third quarter.

Monday’s reading indicates that the Japanese economy avoided a technical recession in the fourth quarter, with increased capital expenditure helping offset a broad decline in consumer spending.

Export-heavy Japanese companies have benefited largely from a weaker yen, which in turn saw stellar profits through 2023.

Capital expenditure grew 2% q-o-q, much more than the preliminary reading, which showed a contraction of 0.1%. But private consumption remained weak, with Monday’s data showing a contraction of 0.3% in the quarter, worse than an initially estimated 0.2% drop. 

Strength in the Japanese economy gives the Bank of Japan more headroom to end its negative interest rates and yield curve control policies. Recent market speculation has the central bank primed to begin tightening its ultra-loose policy by as soon as next week


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.