Japan GDP grows 0.1% in Q4 2025, avoids recession

Japan narrowly avoided a technical recession with a weaker-than-expected 0.1% GDP growth in Q4 2025, driven by private consumption offsetting export and public spending weakness. Despite the yen weakening, Prime Minister Takaichi's focus on proactive fiscal policy, defense spending, and collaboration with the U.S. are expected to be catalysts for economic growth and market activity.