Japan's economy barely grows in the last quarter as exports slow, with 2025 expansion just 1.1%.

February 16, 2026 - 13:43

Japan's economy barely expanded in the final quarter of last year, underscoring persistent fragility as a decline in exports offset modest gains in consumer spending. According to preliminary government data released Monday, the world's third-largest economy grew at an annualized rate of just 0.2% from October to December.

The anemic quarterly performance contributed to a full-year expansion of only 1.1% for 2025. While private consumption showed a slight increase, rising at a 0.4% annualized pace, it was insufficient to counter a significant 1.1% drop in exports during the same period. This weakness in overseas shipments highlights the ongoing vulnerability of Japan's export-dependent model to global trade tensions and shifting demand.

The latest figures confirm a prolonged period of sluggish growth for Japan. The economy has struggled to achieve robust, self-sustaining expansion for years, facing structural challenges like an aging population and soft domestic demand. The current slowdown in key export markets presents a renewed headwind, threatening to further dampen the nation's economic momentum in the coming months. Policymakers now face increased pressure to bolster growth against a backdrop of global uncertainty.