Japan’s Economy Ekes Out Anemic Growth as Takaichi Eyes Spending

Japan’s economic output in the fourth quarter of 2025 was much weaker than expected, registering anemic growth after a deep contraction in the previous period, underscoring the case for Prime Minister Sanae Takaichi’s proactive spending policies following her election triumph.

Japan’s real gross domestic product grew 0.2% on an annualized basis in the three months through December, according to a Cabinet Office report Monday. That was weaker than economists’ median estimate of 1.6% growth.