Breaking news

Japan’s Economy Beats Expectations—But Is The Growth Real?

by THEFUTURE.TEAM

February 17, 2025

Japan’s economy outpaced forecasts in the fourth quarter, driven by a surge in exports. However, economists caution that the numbers may not be as strong as they seem, with domestic demand still showing signs of weakness.

Key Takeaways

Japan’s GDP grew 0.7% in Q4, exceeding the 0.3% increase economists predicted.
Exports provided the main boost, while domestic demand remained sluggish.
Capital spending rose by 0.5% quarter-on-quarter, falling short of the 1% growth expected.
Annual GDP growth hit 2.8%, well above the 1% forecast but driven largely by statistical revisions.
The Bank of Japan (BOJ) raised interest rates to 0.5%, the highest level since 2008, setting the stage for further policy tightening.

A Closer Look: Real Growth Or Statistical Illusion?

Stefan Angrik, deputy director and senior economist at Moody’s Analytics, warned against reading too much into the numbers. Speaking with CNBC, he noted that the economy only appears to be expanding due to historical data revisions. Without them, Japan’s GDP would have shrunk in Q4.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

“Exports have been the key driver, while imports declined—highlighting the same weak domestic demand we’ve seen over the past two to three years. Maybe hold off on the champagne for now,” Angrik cautioned.

Looking Ahead: Caution Over Consumer Spending

Economists remain wary about Japan’s economic momentum in early 2025:

Citi’s Katsuhiko Aiba predicts that consumption will remain weak into Q1 2025, with a full recovery likely only after Q2.
Real wage growth is expected to stay negative, even as the government reinstates energy subsidies.
Consumer spending saw a 2.7% jump in December, the first increase since July 2024, but prior months showed contractions of 0.4% (November) and 1.3% (October).

Despite the Q4 surprise, full-year GDP growth for 2024 came in at just 0.1%, a steep drop from 1.5% in 2023. Following the data release, Japan’s Nikkei 225 dipped 0.29%, while the yen strengthened by 0.2% to 152.02 per dollar.

With mixed signals from the economy, policymakers and investors will be watching closely to see whether Japan’s growth is truly sustainable—or just a statistical mirage.

The Future Forbes Realty Global Properties

Competition Authority Launches Comprehensive Review of ExxonMobil Cyprus Acquisition

by THEFUTURE.TEAM

September 16, 2025

Investigation Initiated Over Strategic Acquisition

The Competition Protection Authority has commenced a thorough investigation into the acquisition of ExxonMobil Cyprus Limited’s share capital by Petrolina Holdings Public Ltd through Med Energywise Ltd. This inquiry was formally initiated following a session held on 10 September 2025, after an in-depth review of the pertinent report by the Authority’s Service.

Concerns Over Market Compatibility

Authorities have expressed serious concerns regarding the compatibility of the transaction with established competitive practices. The review indicates that the acquisition may affect several critical petroleum markets, both horizontally and vertically, thereby raising the potential for adverse impacts on market dynamics.

Horizontal Market Dynamics

On the horizontal front, potential effects have been identified in the import market for petroleum products, as well as in both wholesale and retail distribution channels of these products. The consolidation is believed to increase the risk of price rises and coordinated actions, given the direct competitive proximity between Petrolina and ExxonMobil.

Vertical and Adjacent Market Implications

Vertical aspects of the merger are also under close scrutiny. The new entity could restrict competitors’ access to critical infrastructure such as storage facilities, supply channels, and customer bases. These restrictions could further affect the onshore distribution of fuels, the wholesale market for lubricants, and specialized technical services connected with fuel station operations.

Local Market Considerations

Particular attention is being paid to the potential concentration in the retail fuel market. The investigation suggests that a reduced competitive landscape within a four-kilometer radius of the companies’ fuel stations could lead to diminished local competition, adversely impacting consumer prices and options.

Next Steps and Industry Impact

The Competition Protection Authority, which reached a unanimous decision to pursue a full investigation, remains open to submissions from parties that might be affected by this transaction, as mandated by current legislation. A final decision is expected within four months upon receipt of all necessary evidence, potentially setting a significant precedent for future market consolidation cases in the energy sector.