Japan’s economy performed better than expected in last quarter

But the recovery is slowing and economists expect Japan’s economy to shrink again this quarter due to a second state of emergency to control the spread of the coronavirus.

Japan’s recovery from its worst post-war recession slowed in the fourth quarter, a sign that households and companies have yet to fully shake off the economic hit from the coronavirus pandemic, although the pace of growth was stronger than expected. The data underscores the challenge policymakers face in keeping the economy afloat amid emergency measures to prevent the spread of COVID-19. The world’s third-largest economy grew by an annualised 12.7 percent in October-December compared with the previous three months, government data showed on Monday, marking the second-straight quarter of expansion and exceeding a median market forecast for a 9.5 percent gain.