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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.

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“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.

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Cyprus Emerges As A Leading Household Consumer In The European Union

by THEFUTURE.TEAM

June 30, 2025

Overview Of Eurostat Findings

A recent Eurostat survey, which adjusts real consumption per capita using purchasing power standards (PPS), has positioned Cyprus among the highest household consumers in the European Union. In 2024, Cyprus recorded a per capita expenditure of 21,879 PPS, a figure that underscores the country’s robust material well-being relative to other member states.

Comparative Consumption Analysis

Luxembourg claimed the top spot with an impressive 28,731 PPS per inhabitant. Trailing closely were Ireland (23,534 PPS), Belgium (23,437 PPS), Germany (23,333 PPS), Austria (23,094 PPS), the Netherlands (22,805 PPS), Denmark (22,078 PPS), and Italy (21,986 PPS), with Cyprus rounding out this elite group at 21,879 PPS. These figures not only highlight the high expenditure across these nations but also reflect differences in purchasing power and living standards across the region.

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Contrasting Trends In Household Spending

The survey also shed light on countries with lower household spending levels. Hungary and Bulgaria reported the smallest average expenditures, at 14,621 PPS and 15,025 PPS respectively. Meanwhile, Greece and Portugal recorded 18,752 PPS and 19,328 PPS, respectively. Noteworthy figures from France (20,462 PPS), Finland (20,158 PPS), Lithuania (19,261 PPS), Malta (19,622 PPS), Slovenia (18,269 PPS), Slovakia (17,233 PPS), Latvia (16,461 PPS), Estonia (16,209 PPS), and the Czech Republic (16,757 PPS) further illustrate the disparate economic landscapes within the EU. Spain’s figure, however, was an outlier at 10,899 PPS, suggesting the need for further data clarification.

Growth Trends And Economic Implications

Eurostat’s longitudinal analysis from 2019 to 2024 revealed that Croatia, Bulgaria, and Romania experienced the fastest annual increases in real consumer spending, each growing by at least 3.8%. In contrast, five member states, with the Czech Republic experiencing the largest drop at an average annual decline of 1.3%, indicate a varied economic recovery narrative across the continent.

This comprehensive survey not only provides valuable insights into current household consumption patterns but also offers a robust framework for policymakers and business leaders to understand economic shifts across the EU. Such data is integral for strategic decision-making in markets that are increasingly defined by evolving consumer behavior and regional economic resilience.