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Japan's economy grew an annualized 12.7 percent in the fourth quarter, slowing from a 22.7 percent surge in the previous quarter when it got a boost from pent-up demand after the lifting of a previous state of emergency in May.
The growth translated into a quarter-on-quarter increase of 3.0 percent and marked the second straight quarter of increase and topping an average forecast of a 9.5 percent gain.
For the full 2020, Japan’s economy contracted 4.8 percent, its first annual drop since 2009.
Japan's exports got a much-needed boost from a global rebound in manufacturing activity to make up for some weakness in domestic demand.
Private consumption, which makes up over half of Japan’s economy, rose 2.2 percent after a 5.1 percent rise in the previous quarter. The market forecast was a 1.8 percent gain.
Capital expenditure grew 4.5 percent, which is the first increase in three quarters.
Japan’s economy has gradually emerged from last year’s initial state of emergency curbs thanks to a rebound in exports.
The Japanese government’s decision to roll out new restrictions from January increases the possibility of another recession.
