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Investing.com– Japan avoided a recession in the fourth quarter, revised gross domestic product data showed Monday, helped mainly by increased corporate spending on new facilities and equipment.
Revised data for the October-December quarter showed growth of 0.1% quarter-on-quarter, compared to an earlier reading that showed a contraction of 0.1%. The previous quarter’s figure was also slightly improved, falling from 0.8% to 0.7%.
On a year-over-year basis, it grew 0.4%, revised upward from a 0.4% contraction, while improving substantially from the 2.9% decline in the third quarter.
Monday’s reading indicates that the Japanese economy avoided a technical recession in the fourth quarter, with a rise in capital spending helping to offset a large decline in consumer spending.
Export-heavy Japanese companies have largely benefited from weaker performance, which in turn posted stellar profits through 2023.
it grew by 2% q/q, much more than the preliminary reading, which showed a contraction of 0.1%. But it remains weak, with Monday’s data showing a 0.3% contraction in the quarter, worse than the 0.2% decline initially estimated.
The strength of the Japanese economy gives the Bank of Japan more room to end negative interest rates and yield curve control policies. Recent market speculation has prompted the central bank to begin tightening its ultra-expansionary policy by .