TOKYO: Japanese economic growth fell short of market expectations at the end of 2025, official data showed today, in unwelcome news for Prime Minister Sanae Takaichi after her recent election landslide.
Gross domestic product (GDP) in the world’s fourth-biggest economy expanded by just 0.1% in the fourth quarter (Q4), undershooting market forecasts of growth of 0.4%.
In calendar 2025, Japan’s economy grew 1.1%, after a 0.2% contraction in 2024, the data from the cabinet office showed.
The Q4 growth follows a contraction of 0.7% – revised downwards from an earlier reading of minus 0.6% – in the previous quarter.
Growth in private consumption and private residential and corporate investments, contributed to Q4 growth, according to the cabinet office data.
