Japan's real gross domestic product (GDP) growth rate for the fourth quarter of last year was revised to an annualized 2.2%. This is a downward adjustment from the preliminary figure of 2.8% announced last month.
On the 11th, Japan's Cabinet Office announced that the GDP for the fourth quarter of last year increased by 2.2% on an annualized basis and 0.6% quarter-on-quarter in real terms, excluding the effects of price changes.
This is a downward revision of 0.6 percentage points and 0.1 percentage points, respectively, from the preliminary figures announced in February (annualized 2.8%, quarter-on-quarter 0.7% increase). Nihon Keizai Shimbun (Nikkei) reported that this slightly missed the market expectations compiled by financial information firm QUICK (annualized 2.7%, quarter-on-quarter 0.7%).
By category, private consumption, which accounts for more than half of GDP, was revised from a preliminary 0.1% increase to flat at 0.0%. Nikkei explained that this reflects the impact of weaker demand for food and accommodation services, based on the latest service-related statistics. Capital investment was revised upward from a 0.5% increase to a 0.6% increase.
The annual GDP for 2024 maintained the same preliminary figure of a 0.1% increase year-on-year, marking four consecutive years of positive growth.
The Bank of Japan (BOJ) is scheduled to make an interest rate decision on the 19th. Bloomberg News evaluated that this GDP figure shows that the Japanese economy is generally growing moderately but has some vulnerable areas. In particular, the slowdown in household consumption could lead the BOJ to approach interest rate hikes more cautiously.
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