RTTNews reports that according to the preliminary report from Cabinet Office, Japan's gross domestic product expanded a seasonally adjusted 3.0 percent on quarter in the fourth quarter of 2020. That exceeded expectations for an increase of 2.3 percent following the 5.3 percent gain in the previous three months.

On an annualized basis, GDP spiked 12.7 percent - again beating forecasts for a gain of 9.5 percent following the 22.9 percent surge in the three months prior.

Capital expenditure climbed 4.5 percent on quarter, beating forecasts for 2.6 percent following the 2.4 percent decline in Q3.

External demand gained 1.0 percent on quarter, in line with expectations and down from 2.7 percent in the third quarter.

Private consumption was up 2.2 percent on quarter, beating forecasts for 1.8 percent and down from 5.1 percent in the previous three months.

Domestic demand was up 8.1 percent on quarter, including an 8.4 increase in private demand and a 7.3 percent gain in public demand.

For all of 2020, GDP was down 4.8 percent after adding 0.3 percent in 2019 and 0.6 percent in 2018. Nominal GDP was down 3.9 percent last year.