Japan's Q4 Economic Growth Expected to Show Modest Recovery

Japan's economy is anticipated to experience a modest recovery in the fourth quarter, according to a report by ING analyst Min Joo Kang. According to Jin10, the slight rebound is expected to be driven primarily by private consumption and the services sector, despite a slowdown in monthly economic activity. The senior economist for the Korea-Japan region at the bank noted that retail sales in December fell more than expected, and manufacturing activity likely remained sluggish during the quarter. Japan's GDP is projected to grow by 0.2% quarter-on-quarter in the fourth quarter of 2025, reversing a 0.6% contraction in the third quarter.