Tokyo: The Japanese economy expanded at a slower pace than anticipated in the fourth quarter of last year. Japan's economy showed signs of recovery with a 0.2 percent growth following a contraction of 2.6 percent in the previous quarter. Despite this rebound, the growth rate fell short of analysts' expectations of a 1.6 percent increase.
According to Thai News Agency, the latest data suggests that the impact of US tax measures is gradually fading, allowing the Bank of Japan to consider raising interest rates as a step toward normalizing monetary policy. The main contributor to the modest economic growth was a 0.2 percent rise in private investment, though household consumption increased by only 0.1 percent. Japanese consumers remain cautious with their spending, influenced by higher living costs and food prices. The decrease in pressure from US tariffs has also contributed to stabilizing Japan's export sector.
Economists project that Japan's economy will continue to expand at a measured pace throughout the year. They forecast an annual growth rate of 1.04 percent in the first quarter, increasing to 1.12 percent in the second quarter. In response, the government, led by Prime Minister Sanae Takaichi, is preparing a 21.3 trillion yen (approximately 4.33 trillion baht) stimulus package to foster long-term economic confidence.