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

Cyprus’ Strong Youth Employment Rate Still Does Not Guarantee Early Independence

by THEFUTURE.TEAM

September 16, 2026

Young people in Cyprus have a relatively high employment rate, but they leave the parental home later than the EU average, according to Eurostat data.

Cypriots left home at an average age of 27 in 2025, compared with 26.3 years across the EU. At the same time, 72.3% of people aged 20 to 29 in Cyprus were employed, well above the EU average of 65.5%.

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

Strong Employment Does Not Mean Early Independence

Only nine countries recorded higher youth employment rates than Cyprus. Iceland led at 85.3%, followed by the Netherlands at 84%, Malta at 82.1%, Switzerland at 78.3% and Germany at 77%.

Norway recorded 76.5%, Ireland 76.1%, Denmark 74.8% and Austria 74.6%. Eurostat said countries where young people leave home earlier generally tend to have higher youth employment rates.

Southern Europe Sees Later Moves

Finland had the lowest average age for leaving the parental home at 21.4 years, followed by Denmark at 21.8 and Estonia and Lithuania at 22.7. Croatia recorded the highest average at 31.5 years, followed by Greece and Slovakia at 30.9. Spain and Italy both stood at 30.2 years.

Across the EU, the average has remained close to 26 since 2002, rising only slightly from 26.2 years in 2024 to 26.3 years in 2025.

Cyprus Labour Market Is Cooling

The figures come as Cyprus’ labor market shows some signs of easing, although demand for workers remains relatively strong by European standards.

Separate Eurostat data showed Cyprus had the EU’s largest annual decline in its job vacancy rate in the second quarter of 2026. The rate fell to 2.6% from 3.3% a year earlier, but remained above the EU average of 2.0% and the euro area average of 2.1%.

Cost Of Living Remains A Factor

Housing and other living costs can also affect how quickly young workers establish independent households. Eurostat reported that Cyprus’ household consumption price level was 89.2% of the EU average in 2025.

A relatively lower overall price level does not eliminate affordability pressures for people on modest incomes. For younger workers, the issue can be whether wages are sufficient to cover rent, utilities, food and other basic expenses.

Cyprus therefore combines relatively high youth employment with a later transition to independent living, suggesting that access to work and the ability to afford a separate household do not always move together.

Breaking news