Japan’s economy showed modest growth in 2024
The economy expanded by 0.7% in the fourth quarter, which was higher than market expectations of 0.3%. However, for the full year, Japan’s GDP growth was just 0.1%, a significant slowdown from the 1.5% growth seen in 2023.
Exports played a key role in boosting economic growth during the fourth quarter, while domestic demand remained relatively weak.
The Bank of Japan has been gradually raising interest rates, signalling a move away from the long-standing policies aimed at combating deflation.
It’s a mixed picture, but there are some positive signs, especially with the increase in business spending and a rebound in inbound consumption