Japan economy evades recession on slim Q4 growth
Upstox
2 min read • Updated: March 11, 2024, 5:19 PM
Summary
The upward revision came amid growing anticipations that the Bank of Japan (BOJ) could scrap negative interest rates during its March 18-19 meeting.
Japan's economy ditched a technical recession after the country's revised gross domestic product (GDP) grew 0.4% in the October-December quarter compared to the same period last year, supported by solid capital expenditure.
On a quarter-on-quarter basis, GDP expanded 0.1% from the previous three months, CNN reported. The capital expenditure rose 2% from the last quarter.
The upward revision came amid growing anticipation that the Bank of Japan (BOJ), the country’s central lender, could scrap negative interest rates during its March 18-19 meeting.
Private consumption fell by 0.3% in the October-December quarter.
Japanese Prime Minister Fumio Kishida is tracking trends in consumption and wages to ascertain whether the island nation has overcome deflation. He also plans to meet business leaders and unions this week for a final push.
Despite the economic struggles, Japan's stock exchange is reaching new highs as foreign investors are taking advantage of the cheap yen.
Earlier this month, benchmark Nikkei 225 index crossed the 40,000 threshold for the first time after crossing its 1989 peak in February.
Even as Japan, along with other G7 economies, continue to reel under pressure, the Indian economy has reported a robust growth. The GDP expanded by 8.4% in the October-December quarter, and is projected to grow by 8% in the fiscal year ending March 31, 2024, as per the estimates shared by the RBI.