Japan averted a technical recession as revised official data on Monday showed the economy returned to growth in the October-December period last year, bolstered by strong capital expenditure.
The upward revisions though were weaker than estimated, with private consumption remaining weak.
Expectations are rising that the Bank of Japan may normalize interest rates as early as its March 18-19 meeting amid signs of robust wage gains at this year’s Shunto spring wage negotiations between unions and employers.
Japan’s gross domestic product expanded 0.4% in the fourth quarter compared with a year earlier, weaker than consensus expectations for 1.1% growth in a Reuters poll. Provisional data last month had showed GDP contracting 0.4%. The economy had contracted 3.3% in the July-September period.
Japan’s fourth-quarter GDP also expanded 0.1% from the previous three months, weaker than the median forecast for 0.3% growth in a Reuters poll. Provisional data had showed a 0.1% contraction. The economy had shrunk 0.8% in the third quarter from the preceding one.