Japan economy grows 1.3% in Q4 2025, revised up, on stronger investment

Japan's economy expanded an annualized real 1.3 percent in the October-December quarter, upgraded from an initially reported increase of 0.2 percent, driven up by stronger business investment and private spending, government data showed Tuesday, Kyodo reported.

Tokyo, Japan
Photo credit: Kyodo

It marked the first expansion in two quarters. Real gross domestic product, adjusted for inflation, climbed 0.3% from the previous quarter, compared with an initial estimate of a 0.1% increase, the Cabinet Office said.

GDP is the total value of goods and services produced in a country.

In the latest GDP data, capital spending rose 1.3% in the three months through December, revised up from a 0.2% increase, while public investment was adjusted to a 0.5% dip from a 1.3% decline.

Private consumption, which accounts for more than half of GDP, advanced 0.3% in the October-December period, up from a 0.1% increase.

The revision was due to a reduction in the margin of decline for spending on toys, games, fisheries, and outlays for dining, a Cabinet Office official said.

Exports and imports both contracted 0.3%, unchanged from the preliminary reading.

Nominal GDP expanded an annualized rate of 3.5%, climbing from a 2.3% gain reported earlier.

As reported earlier, Japan's real wages were up 1.4% in Jan., 1st rise in 13 months, as inflation slows.

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