The reading, which marked the second straight quarter of economic expansion following a historic recession, was below the median forecast of 12.6 percent growth by analysts surveyed by the Nikkei Business Daily, Deutsche press agency (dpa) reported.
In 2020, the economy shrank by 4.8 percent due to a consumption tax hike and the Covid-19 pandemic, marking the first contraction in 11 years, the Cabinet Office said in a statement.
In the last quarter of 2020, corporate spending grew 4.3 percent quarter-on-quarter, revised down from an initial reading of 4.5 percent reported last month, and an increase from a 2.4 percent contraction in the July-to-September period, the office said.
Private consumption rose 2.2 percent following a 5.1 percent increase in the third quarter.
Exports soared 11.1 percent, thanks to China, the biggest trading partner, following a 7.4 percent rise in the third quarter, while imports rose 4 percent, marking the first increase in second quarters.
The economic recovery is unlikely to continue as Japan extended a coronavirus state of emergency in Tokyo and three neighboring prefectures on Monday by two more weeks. The measure has been in place since early January due to a resurgence of infections.
The government requested that residents in the regions avoid unnecessary outings and that bars and restaurants close by 8 pm.
Japan has never imposed a mandatory lockdown over the pandemic.
In the second quarter of 2020, as the pandemic and the tax increase from late 2019 hit, Japan's economy shrank by a record annualized 29.3 percent for the third straight quarterly contraction.
