Japan pulls back from the brink of recession

Japan avoided a technical recession as revised fourth-quarter data showed the economy grew by 0.4 percent. Japan avoided a technical recession on Monday after revised official data showed the economy returned to growth in October-December last year, supported by strong capital spending. But upward revisions were weaker than forecast and private consumption remained weak. Japan’s gross domestic product rose 0.4 percent in the fourth quarter from a year earlier, below economists’ consensus expectation of 1.1 percent growth. Provisional data last month had shown GDP contracted 0.4 percent. The economy contracted 3.3 percent from July-September. Japan’s fourth-quarter GDP also rose 0.1 percent from the previous three months, below economists’ median forecast of 0.3 percent growth. Provisional data had shown a contraction of 0.1 percent. The economy shrank 0.8 percent in the third quarter from the previous quarter. Expectations are growing that the Bank of Japan could normalize interest rates at its March 18-19 meeting, amid signs of strong wage increases in this year’s spring Shunto wage talks between unions and employers.