FX.co ★ Japan GDP Rebounds Modestly in Q4, Edging Out of Contraction

Japan’s economy showed a tentative return to growth at the end of 2025, with gross domestic product (GDP) rising 0.2% year-over-year in the fourth quarter. The data, updated on 15 February 2026, mark a notable improvement from the sharp 2.6% annual decline recorded in the third quarter of 2025.

The latest figures suggest that Japan may be stabilizing after a period of pronounced weakness, as the fourth-quarter reading breaks the pattern of year-over-year contraction seen in the previous quarter. While the rebound is modest, the shift from a steep 2.6% drop to a slight 0.2% gain indicates that the worst of the downturn earlier in 2025 could be easing.