Japan's GDP slows to 0.5pc in Q4 of 2017

Japan's economic growth slowed in the last three months of 2017 and missed expectations, preliminary official figures show.

The world's third-largest economy expanded at an annualised rate of 0.5 per cent in the quarter, against analyst forecasts of 0.9 per cent.

But it is still the country's eighth consecutive quarter of growth - the longest streak since the late 1980s.

The GDP figures compare with annualised growth of 2.2 per cent in the previous quarter.

Annualised growth rates represent a value of growth if the quarter-on-previous quarter rate of change were maintained for a full year.

'Positive position'

Despite the disappointing data, there were signs of confidence among Japanese shoppers.

Consumer spending, which accounts for about 60 per cent of Japan's economy, rose by 0.5 per cent compared with the quarter before, against expectations for a rise of 0.4 per cent.

Tokyo-based economist Jesper Koll told the BBC that for the first time in 30 years, the country's economy was in a positive position.

"You've got wages improving, and the quality of jobs is improving, so the overall environment for consumption is now a positive one, while over the last 30 years it was a negative one," said Koll, from WisdomTree asset management company.

"That's the key point that's driving the steady expansion of Japan."