Revised data shows Japan’s economy grew on strong investment

2026-03-10 - 03:54

The revision comes as Japanese prime minister Sanae Takaichi faces pressure to boost the economy. (EPA Images pic) TOKYO: The Japanese economy grew more than initially thought in the fourth quarter of 2025 on strong corporate investment, revised data showed on Tuesday. The world’s fourth-largest economy grew 0.3% in the three months to December, slightly up from the preliminary figure of 0.1%, according to the cabinet office. On an annualised basis, GDP grew 1.3%, up from an initially reported increase of 0.2%. Growth in private consumption, and private residential and corporate investments, contributed to the expansion, according to the cabinet office data. The revision comes as prime minister Sanae Takaichi faces pressure to boost the economy. Takaichi became Japan’s first woman prime minister in October and called snap elections for Feb 8. The vote saw her Liberal Democratic Party (LDP) win a historic two-thirds majority in the lower house. In November, her government pushed through a 21.3-trillion-yen (US$139-billion) stimulus package including energy subsidies, cash handouts and investment incentives in key fields like semiconductors and artificial intelligence. It also included funds for expanded spending on defence, as China increases military activities in the wider region. Her spending plans have however worried investors. Japan’s debts are more than twice the size of the country’s economy, with the highest ratio among advanced economies.