Japan's economy rebounds on solid consumption, Omicron clouds outlook

Some analysts expect the economy to contract again in the current quarter as rising Covid cases and supply chain disruptions hit factory output

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 annualised 5.4% in October-December after contracting a revised 2.7% in the previous quarter, government data showed on Tuesday, falling short of a median market forecast for a 5.8% gain.

The increase