Japan's Q4 Growth Disappoints as Takaichi Pushes for More Spending

• Japan's Q4 2025 GDP grew by a mere 0.2% annually, significantly below the 1.6% forecast.
• This follows a severe contraction in the previous quarter, highlighting an erratic economic recovery.
• Prime Minister Sanae Takaichi plans to expand spending amidst the weak growth.
• Consumer spending rose by only 0.1%, indicating fragile domestic demand, while capital spending increased by 0.2%.
• Inbound tourism, particularly from China, declined after Takaichi's remarks on Taiwan and Beijing's travel warning.