Japan's economy rebounded in the final three months of 2021 as falling coronavirus cases helped prop up consumption, though rising raw material costs and a spike in new omicron variant infections cloud the outlook.
Some analysts expect the economy to contract again in the current quarter as rising COVID-19 cases and supply chain disruptions hit factory output, heightening challenges for policymakers in sustaining a fragile recovery.
The world's third-largest economy expanded an annualized 5.4% in the October-December quarter after contracting a revised 2.7% in the previous quarter, government data showed Tuesday, falling short of a median market forecast for a 5.8% gain.