Japan's economy grows steadily, net exports are an important driving force

Increased corporate investment and improved net exports helped Japan's economy continue to grow in the fourth quarter of 2024, marking the third consecutive quarter of growth.

Japan's economy grew for the third consecutive quarter. (Photo: Thanh Ha)

Today (February 17), the Japanese Cabinet Office released a report showing that the country's Gross Domestic Product (GDP) in the fourth quarter of 2024 increased by 2.8% compared to the same period in 2023, higher than the adjusted increase of 1.7% in the previous quarter and far exceeding the 1.1% forecast from analysts.

Thus, the economy of the Land of the Rising Sun is still growing steadily, in line with the forecast of the Bank of Japan (BoJ).

Personal consumption, although only slightly up, was still a positive sign amid growing concerns among Japanese people about persistent inflation outpacing wage growth, the report said.

The Japanese government may continue to introduce more consumer support measures, especially as the ruling coalition is negotiating with opposition parties on increasing income tax exemptions and exempting high school tuition fees in the next fiscal year's budget (starting April 2025).

Net exports remain an important driver of the economy, while imports decline in the fourth quarter of 2024, partly due to lower energy prices. Exports rise slightly thanks to strong spending by foreign tourists, which are included in the services export group.

Japan's GDP growth momentum in the fourth quarter of 2024 could strengthen policymakers' confidence that they can continue to unwind ultra-loose monetary policy with gradual interest rate hikes.

The official GDP figure will be revised in March 2025, about a week before the BoJ's next meeting.

Economists predict that the bank will wait until this summer before continuing to raise interest rates.

Currently, the trade outlook of the Land of the Rising Sun still faces many uncertainties as US President Donald Trump threatens to impose additional import tariffs on trading partners.

The administration is seeking clarity on the tariffs Mr Trump is expected to impose, and is pushing for exemptions from new tariffs on steel and aluminium.

Source: https://baoquocte.vn/kinh-te-nhat-ban-tang-truong-on-dinh-xuat-khau-rong-la-dong-luc-quan-trong-304641.html