Japan’s economy grew at an annualised rate of 2.8% in the October-December quarter, driven by stronger business spending and better-than-expected consumption.
Strong domestic demand is supporting Japan’s recovery despite concerns over U.S. tariff threats impacting exports.
The positive growth may prompt the Bank of Japan to tighten interest rates and further normalise monetary policy.
GDP growth exceeded expectations, with a 0.7% quarterly rise, surpassing the forecasted 0.3%.
Private consumption rose by 0.1%, defying a predicted 0.3% decline, partly due to year-end bonuses.
Capital spending increased by 0.5%, reversing a decline from the previous quarter, though it fell short of market estimates.
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