Japan’s economy probably emerged from its third recession in five years last quarter as cold weather boosted consumption, bolstering Prime Minister Shinzo Abe’s campaign to revive growth.
Gross domestic product data due tomorrow will probably show an annualized 0.4 percent expansion in the three months through December, according to the median forecast in a survey of 32 economists. Banks including JPMorgan Chase & Co. and Citigroup Inc. raised their forecasts from a contraction this month after a gauge of consumption rose.
Abe’s challenge is to induce a sustained economic recovery as he seeks to end deflation through more aggressive easing by the Bank of Japan. With current BOJ Governor Masaaki Shirakawa set to step down next month, the premier may increase pressure for more monetary stimulus this year as a planned sales tax rise in 2014 is predicted to drag on growth.
Consumer spending probably rose 0.5 percent in the October- December period from the previous three months, according to the Bloomberg News survey. The Cabinet Office’s Synthetic Consumption Index, a gauge economists use to forecast private spending, rose in the quarter.
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