The high inflation witnessed by many countries, and the slowdown in global growth, have curbed the recovery in the third largest economy in the world after the Corona epidemic, despite the great flexibility in monetary policy pursued by the Bank of Japan.
The Japanese economy expanded by 0.1 percent year-on-year in the October-December period, less than the preliminary estimate of 0.6 percent, which suggested growth of 0.6 percent, and far below economists’ expectations of 0.8 percent.
The Japanese economy contracted by 1.1 percent in the third quarter of 2022.
The economist at the Daiwa Institute for Research, Wakaba Kobayashi, said that the liberalization in spending was weak, which caused the modest growth rate, indicating that the rise in inflation rates most likely curbed consumption.
Official data showed that private consumption in Japan, which accounts for more than half of the country’s gross domestic product, grew by 0.3 percent in the second reading, down from the first reading of 0.5 percent.
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