Japan upgrades Q4 GDP growth to an annualized 1.3 percent
Japan revised its fourth quarter GDP growth to an annualized 1.3 percent on Tuesday. The upgrade followed stronger business spending and private consumption.
Japan reported a significant upward revision to its economic growth for the final quarter of the year, with the economy expanding at an annualized rate of 1.3%. According to revised data from the Cabinet Office released on Tuesday, this performance far exceeded the initial estimate of 0.2% and surpassed the median forecast of 1.2% set by economists. Without annualization, the gross domestic product (GDP) grew by 0.3% during the October-December period, matching market expectations and showing improvement over the preliminary reading of 0.1% growth. The revised figures highlighted a stronger recovery in domestic activity. Private consumption, a critical component accounting for over half of the national economy, increased by 0.3%, up from the 0.1% uptick originally reported. Business investment also showed robust gains, as capital expenditure was revised to a 1.3% expansion, compared to the initial 0.2% estimate and the 1.1% growth expected by analysts. While domestic demand contributed 0.3 percentage points to the GDP—an upgrade from the previously estimated zero contribution—external demand remained neutral. The contribution from net exports was unchanged from the preliminary data, providing no additional boost to the quarterly growth figure.
