Japan has avoided recession, a revision of fourth-quarter GDP data showed. Gross domestic product (GDP) increased by 0.1 per cent compared to the previous three months, while the preliminary report showed a 0.1 per cent decline. This was announced today by the Japanese government. A recession is usually defined as two consecutive quarters of economic contraction. Japan lost its position as the world’s third-largest economy last year, a position from which the country was dethroned by Germany.
Growth
On an annualized basis, the economy grew at a rate of 0.4 percent in the fourth quarter and contracted at the same rate, according to the preliminary report. The market expects the Bank of Japan could exit negative interest rates as early as this month.
Analysts had expected the economy to show 0.3 percent growth quarter-on-quarter, according to Reuters. On an annualized basis, they expected a 1.1 percent rise.
The central bank
The Bank of Japan is likely to raise interest rates from next month, analysts said. It introduced a negative interest rate in 2016 to encourage spending and investment. But negative rates have made the Japanese yen less attractive to global investors, which has led to a fall in its exchange rate.
Nominal gross domestic product was $4.21 trillion last year. This put Germany ahead of Japan, whose nominal GDP was $4.46 trillion.
Analysts note that Japan’s economy is gradually losing competitiveness and productivity, while the population is shrinking as Japanese age and have fewer children. Japan left its position as the world’s second largest economy in 2010, with China taking its place. The United States remains first.
zdroj: ČTK
