TOKYO, March 11 — Japan's real gross domestic product (GDP) grew by an annualised 2.2 per cent in the fourth quarter last year, marking a downward revision from the preliminary estimate of 2.8 per cent, data released by the Cabinet Office showed today, reported Xinhua.
For the full 2024, Japan's economy expanded 0.1 per cent, unchanged from the initial estimate.
Consumer spending, which accounts for more than half of GDP, was revised down to flat growth from the initial estimate of a 0.1 per cent increase for Q4. Weak demand in restaurants, accommodations, and automobiles contributed to the downward revision.
Business investment was revised upward to 0.6 per cent growth from 0.5 per cent, driven by stronger-than-expected software investment in December. However, private inventories weighed on growth, with their contribution revised from minus 0.2 per cent to minus 0.3 per cent, due to inventory drawdowns in crude oil and other materials.
Public investment declined by 0.7 per cent, a deeper contraction than the 0.3-per cent drop reported in the preliminary estimate, as government construction projects tapered off.
Meanwhile, private housing investment was revised to a 0.2-per cent decline from a 0.1-per cent increase, reflecting weak demand for home renovations.
Exports were slightly lower than initially estimated, growing 1.0 per cent instead of 1.1 per cent, though the overall contribution of external demand remained unchanged.
At a press conference today, Economic Revitalisation Minister Ryosei Akazawa said that Japan's economy remains on a gradual recovery path, supported by strong wage hikes in spring labour negotiations and improving employment and income conditions.
However, he cautioned that downside risks from the global economy, US policy decisions, and the impact of inflation on consumer spending require close monitoring.
— Bernama-Xinhua
