The realm of global trade has entered a period of uncertainty due to many factors, arguably, and largely due to one major factor, US president Donald Trump. Amid these developments originating from the White House, other factors, including domestic growth, play a role in placating economies.
Japan's GDP Growth Slows
Japan, the world's fourth-largest economy after the US, China and Germany, recently released its growth data for 2024. The economy which as been in the middle of political turmoil, owing to instability in the Japanese government led by the ruling party, the LDP.
The Japanese Economy grew at the rate of 0.1 per cent in 2024. This is much lower than the rate of growth attained by the Land of Rising Sun in 2023. In 2023, the economy grew at 1.5 per cent.
Out Of Deflationary Cycle
Here, given its status as an advanced economy, Japan, like its Western counterpart, tends to exhibit a lower growth rate, unlike developing economies, including the likes of India.
This sluggish overall growth comes to the fore, despite the 'normalisation' of the Japanese economy in the last quarter or Q4 of 2024. Japan, according to observers, has come out of its deflationary cycle, into a more 'normal' realm of economics, with positive interest rates and palatable levels of inflation.
The Japanese market reacted in a cautious manner to these developments. The marquee benchmark indices, Nikkei 225 and TOPIX started the day on a negative note, opening lower than the previous day's closing.
Nikkei 225
When it comes to Nikkei, the benchmark index after a negative start, steadied itself.
At the time of writing, the index was trading in green with gains of 66.68 points or 0.17 per cent. This took the overall value of the index to 39,216.11.
TOPIX
When we look at the TOPIX index, this benchmark at the Japanese Exchange also started the day in red, to better its position.
At the time of writing, the index reached 2,771.02 points, having surged by 11.81 points or 0.43 per cent.
