Japan's economy expands annualised 0.2% in Q4, below forecast
Growth was limited by weak domestic demand and export drops partly linked to U.S. tariffs while government spending and imports also weighed on the economy.
- Japan's Cabinet Office reported on Monday that the economy grew an annualised 0.2%, with a 0.1% quarterly rise, missing the 1.6% forecast.
- Net external demand showed zero growth contribution as private consumption rose 0.1% and Japanese corporations' capital spending gained 0.2% amid U.S. tariffs.
- Official figures show real GDP for calendar-year 2025 rose 1.1%, nominal GDP increased 0.6% quarter on quarter, about 2.2% annualised, while government spending and imports dragged growth.
- Since growth resumed, the weak print bolsters Prime Minister Sanae Takaichi's case for more fiscal stimulus, as the Bank of Japan continues rate normalization, according to sources.
- Ahead of the April 1 fiscal year, Prime Minister Sanae Takaichi plans to roll out revival policies, with the Japan Center for Economic Research survey predicting 1.04 and 1.12 growth in coming months.
42 Articles
42 Articles
Japan's economy has only increased by 0.2% per year in the last quarter of 2025, thus avoiding a technical recession, according to government-published monthly data. For the entire year, growth was 1.1%, at the bottom of the decline...
Japan's GDP returns to growth in Q4, but misses market forecasts;
In Q4 2025, Japan's GDP grew by 0.1% quarter-on-quarter, recovering from a 0.7% decline in Q3 but falling short of the expected 0.4% rise. The annualized growth rate was 0.2%, compared to a revised 2.6% contraction in the prior quarter and less than
Japan's economy barely grows in the last quarter as exports slow, with 2025 expansion just 1.1%.
Japan has reported its economy expanded at an anemic 0.2% annual pace in the last quarter, with growth for 2025 at just 1.1%.
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- 48% of the sources are Center
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