By Japan’s economy has defied expectations, recording a 2.8% growth in GDP for the fourth quarter of 2024. This positive performance is attributed to a combination of factors, including a surge in domestic consumption, a recovery in the tourism sector, and strong demand for Japanese exports. The weaker yen has also made Japanese goods more attractive in international markets, further fueling economic activity.
Despite these gains, experts caution that Japan’s long-term economic health depends on addressing structural issues such as labor shortages and demographic decline. The government’s focus on innovation and digital transformation is seen as a critical step toward ensuring sustainable growth in the coming years.