Japanxa0avoids recession after quarterly economic growth data is revised up

Japan’s economy grew at an annualized rate of 0.4% in the last quarter of 2021, surpassing the initial estimate of a 0.4% contraction. The revised figure for gross domestic product (GDP) was better than economists’ median forecast of a 1.1% increase. This means that Japan, now the world’s fourth-largest economy, avoided a technical recession due to stronger-than-expected spending on plants and equipment by companies. On a quarter-on-quarter basis, GDP increased by 0.1%, compared to an initial 0.1% drop. Capital expenditure also improved, growing by 2.0% quarter-on-quarter. However, private consumption, which accounts for about 60% of Japan’s economy, fell by 0.3% in the same period.