Japan's economy grew slower than expected in the fourth quarter due to weak consumer spending, but this growth could still support an interest rate hike.
Japan's economic growth in the fourth quarter (October to December) slowed compared to initial estimates due to weaker consumption, but this growth could still provide favorable conditions for the Bank of Japan (BOJ) to continue its interest rate hike policy.
At the same time, Japanese government officials and analysts have expressed concerns about the potential impact of trade disruptions on global growth and weak consumer spending due to rising prices.
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| Household spending in Japan increased by 0.8% in January compared to the same period last year, much lower than the market forecast of a 3.6% increase. (Illustrative image) |
Revised figures from the Cabinet Office show that Gross Domestic Product (GDP) grew 2.2% year-on-year in the last three months of 2024, lower than the initial estimate of 2.8% growth and the average forecast of economists.
" There hasn't been any significant change in Japan's growth, so I don't think this will affect people's perceptions of the economy. If you only look at GDP, I don't think this will prevent the Bank of Japan from continuing to raise interest rates ," said Kazutaka Maeda, an economist at the Meiji Yasuda Research Institute.
The BOJ raised short-term interest rates to their highest level in 17 years in January, and the growth momentum of the world's fourth-largest economy will be one of the factors determining the pace of future policy tightening.
The capital expenditure component of GDP, a measure of the strength of private sector demand, rose 0.6% in the fourth quarter, an upward revision from the initial estimate of 0.5%. Economists had forecast a 0.3% increase.
Private consumption, which accounts for more than half of economic activity, remained unchanged from the 0.1% increase in preliminary estimates.
External demand contributed 0.7 percentage points to Japan's growth, unchanged from initial estimates. Domestic demand declined 0.2 percentage points.
Japanese Economy Minister Ryosei Akazawa warned that Japanese market consumption could be affected by continuously rising food costs and risks from trade fluctuations.
Data from Japan's Ministry of Internal Affairs showed household spending increased 0.8% in January compared to the same period last year, much lower than the market forecast of a 3.6% increase. According to seasonally adjusted data, January spending decreased 4.5%, larger than the previously estimated 1.9% decline.
| The Bank of Japan raised short-term interest rates to their highest level in 17 years in January, and the growth momentum of the world's fourth-largest economy will be one of the factors determining the pace of future policy tightening. |
Source: https://congthuong.vn/ly-do-tang-truong-kinh-te-o-nhat-ban-cham-lai-377858.html
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