According to today's Wall Street Journal, Japan's economy grew at a robust 5.5% annualized rate in the fourth quarter of 2006.

Japan revised upward its economic-growth data for the October-December quarter, confirming that the economy expanded at a surprisingly strong pace during the period. The government said yesterday that gross domestic product, the widest measure of economic activity, grew…[at] an annualized rate of 5.5%…Corporate expenditure on plant and equipment grew 3.1% from the third quarter…another contributor was public-sector investment, which increased 3.7%… The growth rate for household consumption, the main driver of the sharp economic expansion in the fourth quarter, was left unchanged at 1.1%.

By comparison, the US economy grew at 2.2% in the fourth quarter. Now most expect the Japanese economy to grow more slowly in the next quarter. Also, Japanese tourism in the state continues to shrink, but at some point our bet is that the Japanese rediscover Maui. The faster their economy grows, the sooner that is likely to happen.