Japan fourth-quarter GDP reverses into growth, but misses expectations as rebound underwhelms

Government

Japan's economy grew 0.1% in the fourth quarter of 2025 compared to the previous three months, offering a modest rebound after a sharp contraction earlier in the year. While it was a reversal of the 0.6% contraction in the third quarter, the gross domestic product missed expectations of a 0.4% expansion by economists polled by Reuters. On an annualized basis, the economy expanded 0.2%, compared with forecasts of 1.6% and also rebounding from the third quarter's 2.3% decline. On a year-on-year