2024-03-11 01:26:41 ET
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Japan’s economy returned to growth in Q4 of 2023, preventing a technical recession and indicating potential Bank of Japan interest rate hikes.
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The country’s GDP expanded 0.4% and 0.1% Y/Y and Q/Q, respectively, in the three months to December, reversing preliminary figures showing a 0.4% and 0.1% contraction during the period, helped by a strong upward revision of capital expenditure.
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Those numbers also followed a 3.3% and 0.8% slump Y/Y and Q/Q, respectively, in the third quarter of last year.
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The latest figures bolstered speculation that the Bank of Japan could start raising interest rates soon, with some traders wagering on a March rate hike.
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BOJ board member Junko Nakagawa recently stated that "prospects for the economy to achieve a positive cycle of inflation and wages are in sight."
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Currency: ( USD:JPY )
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More on Japan
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- Japan's manufacturing activity slow, unemployment at 2.4%, though consumer confidence highest since Dec 2021
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Japan's economy avoids recession as strong capex boosts Q4 GDP, revised up to slight expansion