Economic growth of Japan rebounded 1.3% in three months to December from the preceding three month period or at an annualized rate of 5.4%, according to data from Japanese Cabinet office.
The growth is sharply driven by consumer spending after lifting of emergency COVID-19 measures in October last year. Private consumption grew 2.7% year-on-year.
The data also showed the economy grew 1.7 percent in real terms in 2021, the first annual expansion for the economy in three years.
“The rebound in the fourth quarter is positive news and underscores the potential for further recovery once services consumption finds a more stable footing,” said Stefan Angrick, senior economist at Moody’s Analytics, in a Tuesday research note.
“But after a year of ups and downs, the spread of omicron shows that Japan is not quite out of the woods yet.”
“The recovery is unlikely to proceed along a straight line,” predicted Angrick of Moody’s Analytics.