FX.co ★ Japan’s GDP Rebounds into Positive Territory in Q4 2025

Japan’s economy returned to growth in the fourth quarter of 2025, with quarter-on-quarter GDP rising 0.3%, according to updated data released on 09 March 2026. The improvement marks a clear turnaround from the previous quarter’s 0.6% contraction.

The latest figure compares the change in economic output in the fourth quarter of 2025 to the third quarter of 2025, while the earlier -0.6% reading reflected the shift from the second to the third quarter. The move back into positive territory suggests a stabilisation in Japan’s economic activity at the end of 2025 after a period of weakness.

Analysts and investors will now be looking closely at whether this modest rebound can be sustained in subsequent quarters and what it might mean for fiscal and monetary policy discussions in Tokyo.