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THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

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Japan Successfully Dodges Technical Recession with Revised Economic Growth Figures

Japan Successfully Dodges Technical Recession with Revised
Despite avoiding recession Japan still faces economic uncertainty Despite avoiding recession Japan still faces economic uncertainty
Japan Successfully Dodges Technical Recession with Revised
Despite avoiding recession Japan still faces economic uncertainty Despite avoiding recession Japan still faces economic uncertainty

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Japan Successfully Dodges Technical Recession with Revised Economic Growth Figures

Japan has managed to avoid a technical recession after revised economic growth figures revealed a 0.4% increase in gross domestic product (GDP) for the last quarter of 2023 compared to a year earlier. The preliminary data released a month ago had suggested a second consecutive quarter of economic contraction, meeting the criteria for a technical recession. However, the revised figures fell short of some economists’ expectations, who had anticipated an upward revision of around 1% for the fourth quarter GDP. While there are hopes that Japan has evaded a recession, challenges remain, including a potential contraction in the current quarter due to factors such as the impact of a slowdown in China’s economy and the suspension of production at car maker Daihatsu.

Last week, data from the Ministry of Finance indicated a notable increase in business investments, providing a positive signal. However, the latest figures from Japan’s Cabinet Office revealed a 0.3% decline in private consumption, which constitutes approximately 60% of the economy. The uneven economic performance suggests potential headwinds, and the country’s central bank may face decisions on interest rates. Speculation is growing that the Bank of Japan might consider raising interest rates soon. Since cutting borrowing costs below zero in 2016 to stimulate spending and investment, the central bank has maintained rates at -0.1%. Negative rates have aimed to make the yen less attractive to global investors, contributing to a lower currency value.

The potential shift in interest rates has implications for financial markets, with Japan’s main stock market index, the Nikkei 225, experiencing a decline of around 2.5% on Monday morning. As Japan navigates economic challenges and weighs policy decisions, the resilience of its economy and the outcomes of key indicators will be closely monitored.


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