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Japanese GDP increased by 1.1% in 2022, driven in particular by household consumption and the return of tourists, but inflation and the global economic context are threatening this timid recovery.
According to preliminary figures released on Tuesday, Japan’s GDP rose a modest 0.2% in the fourth quarter of 2022. The increase was above consensus expectations of the agency’s economist. Bloomberg which was expecting a 0.5% increase.
Over the whole of 2022, Japanese GDP increased by 1.1%. Growth was supported by household consumption, spending on services, increased exports and the recovery of domestic tourism. Moreover, since the complete lifting of restrictions on entering the country in October, foreign visitors have started to return to Japan in droves.
However, inflation is currently high in the country. It reached 4% in December, which is a national record for 41 years. Future growth remains uncertain due to the slowing global economy.
Economists believe Japan’s economy might benefit from China’s reopening and further government support measures in 2022.
The IMF has also revised upwards its growth forecast for Japan in 2023. It now expects growth at 1.8%, whereas initially it forecast growth at 1.6%.
