Japan seems to have avoided falling into a technical recession after revised official data on economic growth. The revised data shows that the gross domestic product (GDP) was 0.4 percent higher in the last three months of 2023 compared to the previous year, reported Reuters.
Preliminary data released last month showed a second consecutive quarter of economic decline, and it is worth noting that two consecutive quarters of economic decline are typically considered the definition of a technical recession. The revised figures are still below expectations, as some economists had predicted a GDP revision in the fourth quarter of about one percent upward.
Hopes that Japan has sidestepped recession were bolstered last week when data from the Ministry of Finance showed a sharp increase in the amounts companies invested in their businesses.
However, data from the Japanese cabinet on Monday shows that private consumption, which accounts for about 60 percent of the economy, fell by 0.3 percent during that period.
Japan’s uneven economic performance could experience another decline in the current quarter due to the impact of issues including the slowing economy of neighboring China, as well as the suspension of production by car manufacturer Daihatsu.
