Japan's economy barely grows in the last quarter as exports slow, with 2025 expansion just 1.1%.
Japan's Prime Minister Sanae Takaichi, leader of the ruling Liberal Democratic Party (LDP), speaks during her press conference Monday, Feb. 9, 2026 in Tokyo. Credit: AP/Franck Robichon
TOKYO — Japan's economy expanded at an anemic 0.2% annual pace in the last quarter, the government reported Monday, with growth for all of 2025 at just 1.1%.
Private consumption rose at a 0.4% annualized pace in October-December, but that was offset by a 1.1% drop in exports, the latest seasonally adjusted preliminary data show.
Japan’s export-reliant economy has been shaken by President Donald Trump’s tariffs, but has been growing at a lackluster pace for years. Prime Minister Sanae Takaichi is expected to roll out policies to help revive the economy after a landslide victory in a general election earlier this month.
Takaichi has promised to spend more and to suspend Japan's sales tax on food, among other measures.
Japan’s GDP contracted 0.7% in July-September, quarter-to-quarter, after growing 0.5% in April-June. Since the economy returned to growth in the latest quarter, the country narrowly avoided a technical recession, which is two straight quarters of contraction.
On a quarterly basis, the economy grew 0.1% in October to December, the Cabinet Office reported.
The 1.1% expansion last year was the fastest since 2022, when Japan was recovering from the disruptions caused by the COVID-19 pandemic.
The government is projecting that the economy will expand at an average rate of about 0.6% in the near term.
Winter break is full of fun NewsdayTV's Elisa DiStefano and Newsday Deputy Lifestyle Editor Meghan Giannotta have your look at activities to do with the family this winter break.
Winter break is full of fun NewsdayTV's Elisa DiStefano and Newsday Deputy Lifestyle Editor Meghan Giannotta have your look at activities to do with the family this winter break.
