Japanese economic growth fell short of market expectations at the end of 2025, official data showed on Monday, in unwelcome news for Prime Minister Sanae Takaichi after her recent election victory.

Gross domestic product (GDP) in the world's fourth-biggest economy expanded by just 0.1 percent in the fourth quarter, undershooting market forecasts of growth of 0.4 percent.

For the whole of 2025, Japan's economy grew 1.1 percent, after a 0.2-percent contraction in 2024, the data from the cabinet office showed.

The fourth-quarter growth follows a contraction of 0.7 percent – revised downwards from an earlier reading of minus 0.6 percent – in the previous quarter.

Growth in private consumption, and private residential and corporate investments, contributed to the fourth quarter growth, according to the cabinet office data. (AFP)



Edited by Cecil Wong