Japan's economy unexpectedly contracted in the fourth quarter of 2023

Japan’s economy unexpectedly contracted in the October-December period due to high inflation impacting domestic demand. Provisional data showed a 0.4% contraction in GDP compared to the same period the previous year, significantly lower than expected growth of 1.4%. The GDP deflator stood at 3.8% on an annualized basis. The economy also shrank 0.1% compared to the previous quarter, with private consumption declining 0.2% instead of the anticipated expansion of 0.1%.