Japan’s Economy Recovered In Second Half But Barely Grew in 2024

Published On Feb 16, 2025, 8:01 PM

Japan's economy barely grew in 2024, achieving only a 0.1% inflation-adjusted growth rate, down from 1.5% the previous year. This poor performance is attributed to the depreciating yen, which reached a 37-year low against the dollar. Although large companies like Toyota reported record profits due to favorable export conditions, everyday consumers faced increased costs for basic living expenses, leading to decreased household spending. This highlights the complexities of economic policies that prioritize export stimulation through currency reduction, which can also suppress consumer purchasing power and hinder overall economic growth.