Japanese GDP revised lower as BoJ meeting looms

(Sharecast News) - Japanese gross domestic product was revised slightly lower for the fourth quarter of 2024, according to government figures released on Tuesday. The economy expanded at a 0.6% clip over the final three months of the year, Japan's Economic and Social Research Institute at the Cabinet Office reported.

That was an acceleration from the 0.4% growth rate registered in the third quarter but below the 0.7% flash estimate, which was initially stronger than forecasts when it was released last month.

In year-on-year terms, growth came in at 2.2%, down from the initial estimate of 2.8%, as household consumption growth was revised sharply lower to just 0.8%.

The revision will likely complicate matters for the Bank of Japan, which is having to contend with a potential pick-up in inflation as wages and food prices rise.

The Bank of Japan is widely expected to maintain interest rates at the current level of 0.5% at its next meeting on 18-19 March, following three hikes over the past year, with underlying inflation yet to catch up to the central bank's 2% target.