Japan's economy exceeded expectations in Q4 2024, with GDP rising 0.7% quarter-on-quarter, surpassing the forecasted 0.3% and improving from Q3's revised 0.4%. Year-on-year, GDP surged 2.8%, up from a revised 1.7% in the previous quarter.
The robust growth was driven by strong capital expenditure and external demand as businesses increased investments and exports surged. Japanese exporters accelerated shipments in anticipation of higher U.S. trade tariffs under President Donald Trump, who imposed steep duties on steel, aluminum, and Chinese imports.
Despite the export rebound, private consumption growth slowed to 0.1% in Q4 from 0.7% in Q3, signaling a potential cooling in consumer spending after a strong 2024. This comes after the Bank of Japan (BOJ) raised interest rates by 25 basis points, citing confidence in the economy fueled by resilient consumer demand and wage growth.
While consumption slowed, wage growth has been a key economic driver, and the BOJ anticipates further wage hikes in 2025 from spring labor negotiations. The Q4 data highlights Japan's economic resilience amid global uncertainties, with exports and capital spending offsetting weaker consumer demand.
As Japan navigates U.S. trade policies and domestic consumption trends, its economic outlook remains positive, supported by ongoing wage growth and strong export performance. The BOJ's monetary policy adjustments reflect growing optimism, positioning Japan for steady growth in 2025.


Singapore Budget 2026 Set for Fiscal Prudence as Growth Remains Resilient
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target
Global Markets Slide as AI, Crypto, and Precious Metals Face Heightened Volatility
Asian Markets Slip as AI Spending Fears Shake Tech, Wall Street Futures Rebound
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off
Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals
Australia’s December Trade Surplus Expands but Falls Short of Expectations
Gold and Silver Prices Slide as Dollar Strength and Easing Tensions Weigh on Metals
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 



