FX.co ★ Japan's Economy Re-enters Growth in Q4 2025 With Marginal 0.1% GDP Uptick

Japan’s economy edged back into positive territory in the fourth quarter of 2025, with GDP growing 0.1% quarter-over-quarter, according to data updated on 15 February 2026. The modest expansion follows a contraction of 0.7% in the third quarter of 2025, when output declined compared with the previous quarter.

The latest figures suggest a fragile stabilization after the earlier downturn. On a quarter-over-quarter basis, the “actual” reading for the fourth quarter reflects a slight improvement over the “previous” period, when GDP fell more sharply. While the return to growth is minimal, it marks a technical exit from the negative trajectory seen in the third quarter, indicating that Japan’s economy may be slowly regaining momentum heading into 2026.