For the entirety of 2024, the nation's gross domestic product (GDP) increased by 0.1% compared to the previous year, representing the fourth straight year of growth.
In nominal terms, GDP rose by 2.9% to reach 609,288.7 billion yen, surpassing the 600 trillion yen mark for the first time on an annual basis.
In the fourth quarter, private consumption, a key component of domestic demand, saw a real-term increase of 0.1% from the prior quarter, continuing its upward trend for three quarters. However, the growth rate decelerated compared to the July-September period, as spending on beverages, rice, and vegetables declined, likely due to rising prices. Corporate capital investment grew by 0.5%, driven primarily by strong investments in software and semiconductor manufacturing equipment.
Housing investment saw a slight increase of 0.1%, while public investment fell by 0.3% due to escalating labor material costs.
Exports increased by 1.1%, fueled by rising patent sales and increased spending by tourists in Japan. Conversely, imports decreased by 2.1%, marking the first decline in three quarters, primarily due to reductions in the import of medicines and electronic components.
Domestic demand contributed negatively by 0.1 percentage points to the quarter-on-quarter GDP growth rate of 0.7%, while external demand contributed positively by 0.7 points.
Takeshi Minami from Norinchukin Research Institute Co. noted that while private consumption growth has slowed, the decline in imports has significantly bolstered the country's economic growth. He emphasized that the data reveal "weakness in domestic demand" and indicate that the economy is "not in a good shape."