Japan's economy grew at an annualized rate of 0.9% in the third quarter of 2023, exceeding the expected 0.7% but declining from the revised 2.2% growth in the previous quarter. This growth was attributed to a surprising 0.9% increase in private consumption, which accounts for over half of the country's economic output, although it was tempered by a 0.2% decrease in capital spending. Analysts, including Kengo Tanahashi from Nomura Securities, attribute the consumption boost to temporary factors like auto production recovery and tax cuts. However, the overall economic environment remains fragile due to potential slowdowns in major markets like the U.S. and China, which may impact exports. The Bank of Japan's recent interest rate hikes could further influence economic activity, with discussions of additional stimulus measures anticipated to support growth. Following the GDP announcement, Japan's stock market saw a slight uptick while the yen weakened against the dollar.