Japan’s economy grew at an annualized pace of 0.2% in Q4 2025, reversing a revised 2.6% contraction in the prior quarter but missing market forecasts of a 1.6% growth, preliminary data showed. The modest rebound was supported by a recovery in business spending, a positive contribution from net trade, and increased government expenditure. These gains offset weakness in private consumption, which grew the least in a year amid lingering cost pressures, highlighting the uneven nature of Japan’s growth momentum heading into 2026.