Japan’s gross domestic product grew at an annualized rate of 12.7% in the three months to December from the previous quarter, according to The Japan Times. The double-digit growth pushed Japan’s main stock index Nikkei 225 up 1.9% to cross the 30,000 point threshold for the first time since August 1990.
- Japan’s growth, which was better than expected, signals a potential for further recovery after the end of a damaging state of emergency.
- The fourth-quarter expansion helped Japan to survive the pandemic year with a 4.8% contraction, better than forecasted 5.3% drop.
- Rising trade and household spending gains fueled Japan’s growth while investment outlays by firms also rose at the fastest pace in more than five years.
- Despite the economic recovery, Japan’s consumer spending remains below average while exports are likely to soften if virus-related restrictions in Europe and elsewhere continue.
- Japan’s immediate outlook also depends on how long the state of emergency lasts.
Nikkei 225 stock index is currently gaining. NI225 is up 1.91%