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Japan's economy expands annualised 0.2% in Q4, below forecast

Growth was driven by modest increases in private consumption and capital spending as exports remained weak due to U.S. tariffs, limiting the rebound from last quarter's contraction.

  • Japan's economy grew 0.1% in the fourth quarter of 2025, rebounding from a 0.6% contraction in the third quarter but missing forecasts of 0.4% expansion.
  • The Bank of Japan raised its economic growth forecast for the fiscal year ending March 2026 to 0.9% from 0.7% and lifted its fiscal 2026 outlook to 1% from 0.7%.
  • Japan is working with the U.S., its second-largest trading partner, on a $550 billion investment pledge under its trade deal with Washington, but Tokyo and Washington have yet to agree on the first projects tied to the pledge.
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The gross domestic product (GDP), stimulated at the end of the year by the stimulus measures of Prime Minister Sanae Takaichi, rose by 0.1% over the period October-December compared to the previous quarter. Over the whole year 2025, the GDP of the fourth world economy rose by ...

·Paris, France
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Reuters broke the news in United Kingdom on Sunday, February 15, 2026.
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