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"December's industrial production and retail sales figures topped estimates, confirming the picture of an economy that has bottomed out," he said.

"Despite the merger and the efforts to consolidate their power, the new party had disagreements over many policies such as nuclear power, the consumption tax and constitutional amendment," said Masanari Koike, a former member of Japan's House of Representatives.

"Developers need to pay more attention to their financial resilience. Considering that the lending environment is still tight and the debt repayment peak is nearing, developers need to formulate a more selective strategy when making investments," said Xie.

"Economic growth this year matters, but what matters more is how this will affect growth during the next five or 10 years," he said."We must resist the temptation of seeing recovery as a zero-sum game among countries, with a few winning the race while others falling behind."

"Favorable economic conditions make it a particularly opportune time to further reduce macroeconomic vulnerabilities and pursue reforms that target 'better quality, more efficient, fairer, and more sustainable development', as emphasized by President Xi Jinping during the 19th National Congress of the CPC in October," said Elitza Mileva, senior economist of World Bank and co-author of the report.