Japan's economy emerges from recession.

Japan avoided recession as revised figures showed its economy grew in the fourth quarter of 2023, instead of contracting as initially estimated.

Japan announced its revised official figures on March 11. According to these figures, GDP in the fourth quarter of 2023 increased by 0.4% year-on-year and 0.1% year-on-year. Last month, preliminary estimates suggested both figures were lower, pushing Japan into recession with two consecutive quarters of negative growth.

Nevertheless, consumption still declined, by 0.3% in the final quarter of 2023, more than the previous month's estimate. This figure has fallen for three consecutive quarters.

High inflation is stifling domestic demand and personal consumption, putting growth under constant threat. Japanese household spending fell 6.3% in January compared to the same period last year, the sharpest decline in two years.

People shop at a store in Tokyo, Japan. Photo: Reuters

However, the growth was offset when corporate investment in the fourth quarter of 2023 was revised down from a 0.1% decline to a 2% increase, explained Marcel Thieliant, Head of Asia Pacific at Capital Economics.

Today's data also reinforces the Bank of Japan's (BOJ) view that the economy is recovering, thanks to businesses' willingness to increase investment. Coupled with positive signals about wage growth this year, most economists now expect the BOJ to abandon negative interest rates at its March or April meeting. This would be the first time the central bank has raised interest rates since 2007. The bank will hold its policy meeting on March 18-19.

The Japanese yen also strengthened against the US dollar this morning after the revised data was released. Currently, one US dollar is worth 146.7 JPY. The currency has depreciated for over a year, mainly due to Japan maintaining negative interest rates, in contrast to other major economies around the world .

Ha Thu (according to Reuters, CNBC)

Source link: https://vnexpress.net/kinh-te-nhat-ban-thoat-suy-thoai-4720744.html