Japan’s economy grew at an annualised 2.8% in the fourth quarter of 2024, exceeding forecasts of 0.3%, driven by steady exports and moderate consumption, preliminary data from the Cabinet Office showed. Quarter-on-quarter growth was 0.7%, marking a third consecutive expansion. For the full year, GDP rose 0.1%, down from 1.5% in 2023. Private consumption edged up 0.5% in Q4, while exports jumped 4.3% and capital investment rose 0.5%. Analysts suggest anticipation of US tariffs may have boosted trade. With inflation near the Bank of Japan’s 2% target, the central bank raised interest rates to 0.5% last month. Further hikes are possible, though slowing consumption could weigh on growth. The next monetary policy meeting is scheduled for March.