In this Nov. 19, 2014 file photo, a man walks in front of the Bank of Japan headquarters in Tokyo. Japan’s latest data show the economy grew at a real annualized rate of 1.5 percent in October-December, slower than earlier reported but still reaffirming an end to recession. AP
TOKYO, Japan – Japan’s economy grew less than initially thought in the final quarter of 2014, revised government data showed Monday, showing the world’s third largest economy limping out of recession.
The Japanese economy expanded 0.4 percent in the October-December period from the previous quarter, down from an initial estimate of 0.6 percent growth, the Cabinet Office said.
Private-sector capital investment was also revised down to a 0.1 percent drop on the previous quarter, compared with an earlier announced rise of 0.1 percent.
The data confirmed, however, that the Japanese economy exited recession in the final quarter of 2014 as the gross domestic product (GDP) expansion followed two consecutive quarters of contraction.
Japan’s economy slammed on the brakes last year after an April sales tax rise hammered consumer spending.
On an annualized basis, Japan’s GDP growth was revised down to 1.5 percent from the previous figure of 2.2 percent.
It trails the reading for the United States, where revised data showed the economy growing an annualized 2.2 percent in the fourth quarter.
The US Labor Department said Friday the economy pumped out 295,000 new jobs in February, raising expectations the Federal Reserve will raise interest rates as early as June.