Japan’s GDP grew 0.3% qoq in Q4 2025, higher than the flash estimate of 0.1% and in line with market expectations. The reading followed a 0.7% contraction in Q3, amid upward revisions to private consumption, business investment, and government spending. Private consumption, which accounts for more than half of the economy, was revised up to a 0.3% increase (vs 0.1% in an earlier estimate and after 0.5% growth in Q3), partly supported by Tokyo’s fiscal measures aimed at easing cost-of-living pressures. Business investment was also adjusted sharply higher to 1.2% (vs 0.2% previously, after flat growth in Q3), pointing to stronger corporate spending on capacity and equipment. Government spending rose 0.4% (vs 0.1% in the flash reading, after 0.1% in Q3), reflecting continued fiscal support. Meanwhile, net trade made no contribution to growth, as both exports (-0.3% vs -1.4%) and imports (-0.3% vs -0.1%) declined, partly due to softer external demand and weaker domestic import needs.