Tokyo: Japan's economy grew at an annualized pace of 2.8 percent in the October-December period of 2024 for the third straight quarterly expansion, buoyed by strong corporate capital spending, government showed Monday. According to Kuwait News Agency, the gain of the Gross Domestic Product (GDP) followed a 1.2 percent expansion in the July-September period, as per preliminary data released by the Cabinet Office. On a quarterly basis, the world's third-biggest economy rose 0.7 percent in the three months ended December 31 from the preceding period, noting that personal spending, which makes up more than half of Japan's GDP, edged up 0.1 percent from the previous quarter. Corporate capital spending, another key component of domestic growth, rose 0.5 percent, backed by demand for semiconductor manufacturing equipment. In regard to foreign demand, exports increased 1.1 percent from the previous three months, thanks to robust inbound tourism. In the whole of 2024, GDP expanded 0.1 percent, marking growth for th e fourth straight year. Economic Revitalization Minister Ryosei Akazawa stated in a press conference that the economy is expected "to continue its gradual recovery as the employment and income environment improves." However, Akazawa expressed caution regarding rising prices, overseas economic downside risks, and policy trends in the US. The minister emphasized the necessity of paying close attention to the impact that continued price increases will have on personal consumption through downward pressure on consumer sentiment. Japan's nominal 2024 GDP, unadjusted for inflation, totaled JPY 609.3 trillion (USD 4.0 trillion), surpassing the JPY 600 trillion threshold for the first time on a calendar year basis, according to the data.
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