Japan GDP Growth Rate

Japan’s GDP grew by 0.7% qoq in Q4 of 2024, accelerating from an upwardly revised 0.4% expansion in Q3 and surpassing market expectations of 0.3%, preliminary data showed. This marked the third consecutive quarterly growth, driven by a strong rebound in business investment (0.5% vs. -0.1% in Q3), which exceeded forecasts of a 0.4% gain. In addition, net trade contributed 0.7 percentage points to growth, as exports rose for the third straight quarter despite US tariff threats (1.1% vs. 1.5%), while imports shrank for the first time since Q1 2024 (-2.1% vs. 2.0%). Further, government spending expanded for the fourth successive quarter, with its pace quickening (0.3% vs. 0.1%). Meanwhile, private consumption, which accounts for over half of Japan’s economic output, edged up unexpectedly (0.1% vs. 0.7%), defying expectations of a 0.1% decline. The slight gain came amid wage increase momentum, despite persistent food inflation and rising borrowing costs.