JAPAN’S ECONOMY BARELY GREW IN 4TH QUARTER – Takaichi’s government is preparing to ramp up investment through targeted public spending
Japan’s economy eked out an annualized 0.2% expansion in the October-December quarter, government data showed today, scraping back to growth as corporate investment only just reversed its previous decline.
The reading suggests the drag from U.S. tariffs is fading slowly, giving the Bank of Japan reason for cautious confidence as it keeps lifting interest rates to normalize monetary policy.
Prime Minister Sanae Takaichi’s government is also preparing to ramp up investment through targeted public spending in sectors seen as vital to economic security.
The increase in gross domestic product, however, fell short of a median market estimate of a 1.6% gain in a poll, and followed a larger revised 2.6% contraction in the previous quarter. The reading translates into a quarterly rise of 0.1%, weaker than the median estimate of a 0.4% uptick.
Economists project the world’s fourth-largest economy would continue to expand at a gradual pace in coming months. A survey this month by the Japan Center for Economic Research showed 38 economists forecast an average annualized growth of 1.04% in the first quarter and 1.12% in the second quarter this year
