Defying gloomy expectations, Japan's economy chalked up surprisingly strong growth of 0.5% in the last three months of 2002 thanks to healthy exports and stronger than expected demand at home.
But the rare dose of good news was tempered by the slower pace of the expansion and the data failed to dispel doubts about the sustainability of the now year-long recovery.
Apart from deflation and worries about a war in Iraq, uncertainty also lingered over who the prime minister will select as new head of the Bank of Japan, which continued to frustrate many politicians by leaving monetary policy unchanged.
The government said earlier that gross domestic product in the world's second largest economy expanded by 0.5% in Q4 to mark four straight quarters of growth since Japan emerged from its worst post-war slump.
That was much better than the average forecast and translated into annualised growth of 2%, but it still meant the economy slowed from the 0.7% recorded in Q3.
