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

Japan has reported its economy expanded at an anemic 0.2% annual pace in the last quarter, with growth for 2025 at just 1.1%

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

Japan has reported its economy expanded at an anemic 0.2% annual pace in the last quarter, with growth for 2025 at just 1.1%

ByYURI KAGEYAMA AP business writerFebruary 15, 2026, 11:19 PM

1:20Japan's Prime Minister Sanae Takaichi, leader of the ruling Liberal Democratic Party (LDP), speaks during her press conference Monday, Feb. 9, 2026 in Tokyo. (Franck Robichon/Pool Photo via AP)The Associated Press

TOKYO -- Japan's economy expanded at an anemic 0.2% annual pace in the last quarter, the government reported Monday, with growth for all of 2025 at just 1.1%.

Private consumption rose at a 0.4% annualized pace in October-December, but that was offset by a 1.1% drop in exports, the latest seasonally adjusted preliminary data show.

Japan’s export-reliant economy has been shaken by President Donald Trump’s tariffs, but has been growing at a lackluster pace for years. Prime Minister Sanae Takaichi is expected to roll out policies to help revive the economy after a landslide victory in a general election earlier this month.

Takaichi has promised to spend more and to suspend Japan's sales tax on food, among other measures.

Japan’s GDP contracted 0.7% in July-September, quarter-to-quarter, after growing 0.5% in April-June. Since the economy returned to growth in the latest quarter, the country narrowly avoided a technical recession, which is two straight quarters of contraction.

On a quarterly basis, the economy grew 0.1% in October to December, the Cabinet Office reported.