TOKYO (AP) — Japan’s economy expanded at a meager 0.2% annual pace last quarter and is expected to grow by just 1.1% for all of 2025, the government reported Monday.
Private consumption rose at an annualized pace of 0.4% in the October-December period, the latest seasonally adjusted preliminary data showed, but this was offset by a 1.1% decline in exports.
Japan’s export-dependent economy is undergoing major turmoil. President Donald Trump’s Tariffsbut has been growing at a lackluster pace for years. prime minister Sanae Takaichi Following his landslide victory in the general election earlier this month, he is expected to roll out policies to help the economy recover.
Mr. Takaichi promised to increase spending and suspend Japan’s consumption tax on food, among other measures.
Japan’s GDP After increasing quarterly by 0.5% in the April-June period, it decreased by 0.7% in the July-September period. The country narrowly avoided a technical recession, the second consecutive quarter of economic contraction, as the economy returned to growth in the latest quarter.
According to a report by the Cabinet Office, the economic growth rate from October to December was 0.1% on a quarterly basis.
Last year’s 1.1% growth was the fastest since 2022, when Japan was recovering from the disruption caused by the coronavirus pandemic.
The government expects the economy to expand at an average rate of about 0.6% in the short term.
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