Japan extends economic recovery as exports, capex shake off Covid hit

Positive trend: Pedestrians make their way during rush hour at a business district in Tokyo, Japan. The Japanese economy grew at an annual rate of 12.7% in October-December, marking the second straight quarter of growth. — Reuters

TOKYO: Japan’s economy expanded more than expected in the fourth quarter, extending the recovery from its worst postwar recession thanks to a rebound in overseas demand that boosted exports and capital spending.

But the recovery slowed from the third quarter’s brisk pace and new state of emergency curbs cloud the outlook, underscoring the challenge policymakers face in preventing the spread of Covid-19 without choking off a fragile recovery, especially in the battered consumer sector.