Revised data shows Japan economy grew on strong investment

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The revision comes as Prime Minister Sanae Takaichi faces pressure to boost the economy.

The revision comes as Prime Minister Sanae Takaichi faces pressure to boost the economy.

PHOTO: EPA

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TOKYO - The Japanese economy grew more than initially thought in the fourth quarter of 2025 on strong corporate investment, revised data showed on March 10.

The world’s fourth-largest economy grew 0.3 per cent in the three months to December, slightly up from the preliminary figure of 0.1 per cent, according to the Cabinet Office.

On an annualised basis, GDP grew 1.3 per cent, up from an initially reported increase of 0.2 per cent.

Growth in private consumption, and private residential and corporate investments, contributed to the expansion, according to the cabinet office data.

The revision comes as Prime Minister Sanae Takaichi faces pressure to boost the economy.

Ms Takaichi became Japan’s first woman prime minister last October and called snap elections for Feb 8.

The vote saw her Liberal Democratic Party (LDP) win a historic two-thirds majority in the lower house.

Last November, her government pushed through a 21.3-trillion-yen (S$172 billion) stimulus package including energy subsidies, cash handouts and investment incentives in key fields like semiconductors and artificial intelligence.

It also included funds for expanded spending on defence, as China increases military activities in the wider region.

Her spending plans have however worried investors.

Japan’s debts are more than twice the size of the country’s economy, with the highest ratio among advanced economies.

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