Japan's GDP growth was 5.4%, worse than forecast

In the fourth quarter of 2021, Japan's economy grew by 5.4% compared to the same period in 2020. Experts expected the growth to be 5.8%. 

The quarterly growth of the Japanese economy in October-December amounted to 1.3% compared to the previous three months – and this was the maximum growth rate for the year. Analysts had forecast the figure at 1.4%. 

In the third quarter, according to the revised data, the volume of GDP decreased by 0.7%, and not by 0.9%, as previously reported.

Business investment in the last quarter increased by 0.4%, exports increased by 1%, imports decreased by 0.3%. Government spending decreased for the first time in 3 quarters – by 0.3%.

Experts note that despite the fact that the Japanese economy returned to growth in the last quarter of last year, the increase in the incidence of Covid-19 in the first quarter of this year is likely to limit further recovery. 

It is noted that the expansion of the Japanese economy in the fourth quarter is mainly due to an increase in consumer spending by 2.7%. Costs have increased as the lifting of quarantine restrictions in Tokyo and other cities of the country since September 30 has led to a sharp increase in demand for services. It is also worth noting that in the current quarter, new quarantine measures were re-introduced, as another spike in morbidity is observed in the country.