Japan's economy grew less than expected at the end of last year, highlighting potential weaknesses in Prime Minister Abe's economic policies.
Initial forecasts had expected GDP growth of 2.8% for the three month period to December but the actual figure was only 1%.
The reason for the poor results were weaker private consumption, capital spending and lower export figures.
However, it was the fourth successive period of growth for the country.
The country is due to see its consumption tax rise from 5% to 8% in April which will increase consumer prices and could cause further falls in GDP.
Some consumers, however, will be trying to purchase goods ahead of the tax rise to take advantage of the lower prices which could boost GDP figures for the current quarter.
The Nikkei was up 0.56% this morning at 14,393 although it has been fallen by 11.6% over the year as investors sell their Japan exposure.
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