FX.co ★ Japan Economy Expands at Annualized 0.2% in Q4

Japan’s economy expanded at an annualized rate of 0.2% in Q4 2025, rebounding from a revised 2.6% contraction in the previous quarter but falling short of market expectations for 1.6% growth, according to preliminary data. The modest recovery was driven by a pickup in business investment, a positive contribution from net exports, and higher government spending. These factors helped offset subdued private consumption, which registered its weakest increase in a year amid persistent cost pressures. The figures underscore the uneven nature of Japan’s growth momentum as the economy heads into 2026.