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flag Japan's economy grew 0.2% in Q4 2025, narrowly avoiding recession, due to weak consumption and exports amid U.S. tariffs and tensions.

flag Japan's economy grew 0.2% annually in the fourth quarter of 2025, below forecasts, driven by weak private consumption and stagnant exports amid U.S. tariffs and diplomatic tensions. flag The modest rebound from a prior contraction narrowly avoided a technical recession, with full-year growth at 1.1%, the strongest since 2022. flag Prime Minister Sanae Takaichi’s government plans fiscal stimulus, including food tax relief, while the Bank of Japan maintains its tightening stance amid persistent inflation and concerns over debt sustainability.

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