TOKYO, Mar 11 (Reuters): Japan's economy avoided a technical recession, revised government data showed on Monday, even though the upward change in the fourth quarter was weaker than expected and highlighted concerns about the sluggish economic recovery.
Japan's revised gross domestic product (GDP) expanded at an annualised clip of 0.4 per cent in the October-December period from the previous quarter, better than the initial estimate for a 0.4 per cent contraction, according to the Cabinet Office.
It was, however, below economists' median forecast for a 1.1 per cent uptick in a Reuters poll.
On a quarter-on-quarter basis, GDP grew 0.1 per cent, compared with the initial reading of a drop of 0.1. per cent drop and a median forecast for a 0.3 per cent rise.
"The headline is an upward revision, but domestic demand is remains lacklustre, particularly in consumption," said Saisuke Sakai, senior economist at Mizuho Research and Technologies.
The upward revision came amid growing market expectations the Bank of Japan could ditch its negative interest rates as early as this month, fuelled in part by board members' recent hawkish comments that Japan was moving towards the central bank's 2 per cent inflation target.
Capital expenditure, which increased 2.0 per cent quarter-on-quarter, anchored the upward revision. It was better than better than the preliminary 0.1 per cent decrease but still below a median market forecast of a 2.5 per cent rise. Private consumption, which makes up about 60 per cent of Japan's economy, fell 0.3 per cent in October-December, slightly worse than the 0.2 per cent drop in the initial estimate.
Japan GDP revised up to slight expansion, economy avoids recession
FE Team | Published: March 11, 2024 23:28:04
Japan GDP revised up to slight expansion, economy avoids recession
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