Japan's Q4 2023 GDP grows at 0.4% YoY, economy avoids recession

11 Mar '24

1 min read

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Insights

Japan's GDP grew at 0.4 per cent YoY in Q4 2023, avoiding a technical recession and better than the 0.4-per cent drop estimated earlier.
GDP grew at 0.1 per cent quarter-on-quarter (QoQ) in the quarter compared with the 0.1-per cent drop estimated initially.
Capital expenditure rose by 2 per cent QoQ, better than the 0.1-per cent drop announced earlier.

Japan’s gross domestic product (GDP) expanded at 0.4 per cent year on year (YoY) in the fourth quarter (Q4) last year, avoiding a technical recession. The figure released by the Cabinet Office is better than the 0.4-per cent contraction estimated by provisional data released last month.

GDP grew at 0.1 per cent in Q4 2023 on a quarter-on-quarter (QoQ) basis compared with the 0.1-per cent drop estimated initially and a median forecast for a 0.3 per cent rise.

Companies spent stronger than expected on plants and equipment.

Capital expenditure rose by 2 per cent QoQ, better than the 0.1-per cent drop the government announced earlier, global newswires reported.

Private consumption dropped by 0.3 per cent in the October-December quarter last year, a bit worse than the 0.2-per cent drop in the initial estimate.

The country last week saw inflation-adjusted real wages in January shrinking for the 22nd consecutive month, while YoY household spending in the month witnessed the biggest drop in 35 months.

A two-day policy meeting of the Bank of Japan is scheduled on March 18-19.

Japan is now the world’s fourth-largest economy after losing the third rank to Germany.

ALCHEMPro News Desk (DS)

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