Japan’s economy grew only 0.2 percent in the last quarter of the year, the government said on Monday in Tokyo. Total growth for 2025 was 1.1 percent. Spending by families increased a little, but export sales fell. Trade problems and new tariffs from the United States affected business. Prime Minister Sanae Takaichi promised new plans after winning a general election. The government plans to spend more money and stop the food tax for some time.

In the previous quarter, the economy became smaller by 0.7 percent. In the last quarter, it grew 0.1 percent, so the country avoided two straight quarters of decline. Growth was stronger in 2022 after the COVID-19 pandemic. Officials expect slow growth of about 0.6 percent in the near future as trade and spending remain important.