![Iklan](https://elskynews.com/wp-content/uploads/2026/05/Altimet-RidhuanTee-LaguRaya-LaguRayaModen-HiburanMalaysia-SelebritiMalaysia-TrendingMalaysia-ViralMalaysia-MusicMalaysia-EntertainmentNews-1.png")
Kuala Lumpur, – Japan confirmed that its economy expanded faster than previously estimated in the final quarter of 2025, supported by stronger corporate investment and steady domestic demand.
Revised data from Japan’s Cabinet Office showed the country’s gross domestic product (GDP) grew at an annualised pace of 1.3% in the October–December period, significantly higher than the initial estimate of 0.2% and slightly above economists’ forecasts.
The stronger performance was mainly driven by business investment, which rose 1.3%, far exceeding the earlier estimate of 0.2%. Private consumption also improved, increasing 0.3%, reflecting resilient domestic demand.
Japan’s Prime Minister Sanae Takaichi has urged companies to continue investing in key industries to strengthen long-term economic growth. The government is promoting spending in strategic sectors such as technology, infrastructure, and national security industries to support economic expansion.
Despite the positive data, economists warn that external risks remain. Rising energy prices and geopolitical tensions in the Middle East could increase import costs and weigh on Japan’s consumer spending in the coming months.
Japan’s central bank, the Bank of Japan, is also expected to remain cautious on monetary policy as global economic uncertainty continues to influence the outlook.
Analysts say the stronger growth figures confirm that Japan’s recovery is increasingly supported by domestic demand, though the global environment could still pose risks to the country’s economic momentum.
