Japan’s 2024 GDP Growth Weakest in 4 Years

2025-02-17 08:30 By Farida Husna 1 min. read

The Japanese economy grew by just 0.1% in 2024, a sharp moderation from the 1.5% expansion in the prior year and the softest pace since 2020 due to mounting headwinds, including natural disasters, yen depreciation, and global trade uncertainties.

Private consumption fell after three years of growth (-0.1% vs 0.8% in 2023), as wage rises lagged behind inflation for much of the year.

Business investment rose the least in four years (1.2% vs. 1.5%), as the Bank of Japan delivered three rate hikes to normalize policy after years of ultra-low rates.

On the trade front, exports posted their slowest increase since 2020 (1.0% vs. 3.0%), while imports rose after falling in 2023 (1.3% vs -1.5%), weighing on GDP.

Simultaneously, government spending rebounded after a drop in 2023 (0.9% -0.3%).

Japan's nominal GDP stood at JPY 609.29 trillion in 2024 ($4.0 trillion).

While it topped the 600 trillion mark for the first time, Japan remained the world's fourth-largest economy, trailing behind Germany.



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