Japan’s economy grew at a slow 0.2 percent annual rate in the October to December period, according to government data released Monday in Tokyo, as weak exports reduced overall growth and left total 2025 expansion at 1.1 percent. Private consumption rose 0.4 percent during the quarter, but a 1.1 percent fall in exports helped offset that increase. The export-reliant economy has faced pressure from new tariffs introduced by United States President Donald Trump. Prime Minister Sanae Takaichi, who recently won a general election, announced plans for economic stimulus, including higher public spending and a temporary suspension of the sales tax on food.

The Cabinet Office reported that gross domestic product increased 0.1 percent on a quarterly basis after shrinking 0.7 percent in the previous quarter. Growth had reached 0.5 percent in April to June before slowing again. Because the economy returned to growth, the country avoided two straight quarters of decline. The 1.1 percent growth last year was the strongest since 2022, when recovery followed the COVID-19 pandemic. However, officials project that average growth will remain near 0.6 percent in the near term, as export performance and consumer spending continue to influence economic conditions.