Japan's GDP Falls Short of Expectations, Putting Pressure on Takaichi After Landslide Victory
Japan's Q4 GDP grew 0.1% annualized, below the 1.6% forecast, raising pressure on PM Takaichi after a $139 billion stimulus package and recent election win.
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Despite the measures of the Japanese Prime Minister Sanae Takaichi's initial incentive package, recovery of the economy in the last quarter of 2025 was very close to the expectations of experts.
Japan's GDP falls short of expectations
TOKYO, Japan — Japanese economic growth fell short of market expectations in late 2025, official data showed Monday, adding to pressure on Prime Minister Sanae Takaichi to stimulate activity after her recent election landslide.
Japan's economy, the world's fourth-largest, grew weaker than expected in the fourth quarter of last year. This figure is a setback for Japanese Prime Minister Sanae Takaichi, who wants to stimulate the economy with higher government spending and lower taxes. She recently won a major victory in the parliamentary elections with her plans for further economic stimulus.
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