MNI BRIEF: Japan Q4 GDP Rises 0.7% Q/Q, Annualised 2.8%
MNI (SYDNEY) - Japan's economy for the October-December period rose 0.7% q/q, or an annualised 2.8%, thanks to strong capital investment and net exports, posting the third straight quarterly growth, preliminary GDP data released by the Cabinet Office Monday showed.
The Q4 growth was stronger than the MNI median forecast that pointed to a rise of 0.3% q/q, or an annualised 0.9%.
The economic growth in Q4 was in line with the view predicted by Bank of Japan officials who expected the economy to be in a moderate recovery trend.
Private consumption, which accounts for about 60% of Japan's GDP, rose 0.1% q/q in Q4 for the third straight rise following an unrevised 0.7 rise in Q3. Business investment rose 0.5% q/q, the first rise in two quarters following an unrevised 0.1% fall in Q3.
Net exports of goods and services made a positive 0.7 percentage point contribution to total domestic output after pushing Q3 GDP growth down 0.2 pp. Exports rose 1.1% on quarter in Q4 after rising 1.5% q/q in Q3. Imports fell 2.1% in Q4 after rising 2.0% in the previous quarter.
Private-sector inventories contributed a negative 0.2 pp to Q4 GDP following +0.2 pp in Q3, while public investment fell 0.3% q/q, contributing -0.0 pp to GDP.
Japan’s GDP for the third quarter was revised to 0.4% q/q, or an annualised 1.7% from +0.3% q/q, or an annualised +1.2%.
Japan’s GDP rose 0.1% y/y in 2024, slowing from 1.5% in 2023 and from 0.9% in 2022.