Japan Oct.-Dec. GDP Up Annualized 0.2 Pct

Tokyo, Feb. 16 (Jiji Press)–Japan’s real gross domestic product in October-December last year rose 0.1 pct from the previous quarter, posting an annualized gain of 0.2 pct, the government said Monday. The result, which marked the first rise in two quarters after seasonal adjustment, was sluggish, with private consumption showing only limited growth and exports remaining on the decline. The annualized figure was far lower than the average estimate of 1.6 pct growth among the 19 think tanks surveyed by Jiji Press. According to preliminary data from the Cabinet Office for the third quarter of fiscal 2025, private consumption, the main pillar of domestic demand, inched up 0.1 pct quarter on quarter, backed by steady sales of mobile phones and air conditioners. Meanwhile, consumption on food, whose prices are surging, and spending on clothes decreased, reflecting consumer trends to save money. Corporate capital spending grew 0.2 pct partly thanks to growth in demand for semiconductor-making equipment. Software investment was also brisk as companies stepped up spending on labor-saving systems and services amid personnel shortages. Housing investment jumped 4.8 pct. The sector had slumped the previous quarter after being boosted by last-minute demand before the government made it mandatory for new homes to meet energy-saving standards. Meanwhile, public investment fell 1.3 pct. Exports declined 0.3 pct, but the decline was smaller than the previous quarter’s 1.4 pct, which was heavily affected by U.S. tariffs. Automobile exports were still on the downward trend, but the drop seems to be coming to a halt. Consumption by visitors from abroad, which is counted as exports, decreased. Imports into Japan slid 0.3 pct. For the whole of 2025, the country’s real GDP rose 1.1 pct from the previous year. Nominal GDP grew 4.5 pct to 662 trillion yen. Economic and fiscal policy minister Minoru Kiuchi said that the country’s economy is moderately recovering. But he said, “We need to pay attention to downside risks to the economy, including price trends and U.S. trade policies.” END [Copyright The Jiji Press, Ltd.]