Japan’s economy has shown remarkable resilience, with its Q4 GDP growth surpassing analysts’ expectations. According to the latest data, the country’s GDP expanded by 2.8% in the fourth quarter of 2024, driven by robust consumer spending, increased exports, and a rebound in business investment. This growth marks a significant turnaround from the previous quarter, where the economy faced headwinds from global supply chain disruptions and inflationary pressures.

The Japanese government’s stimulus measures, coupled with a weaker yen boosting export competitiveness, have played a pivotal role in this recovery. Economists are optimistic that this upward trend will continue into 2025, provided that global economic conditions remain stable. However, challenges such as an aging population and rising energy costs could pose risks to sustained growth.