AI Data Insight
The increase in public inventory in Japan's Q4 2025 nominal GDP was reported at -10.4 billion yen, narrowing slightly from the previous decline of -12.3 billion yen, but still indicating destocking for the third consecutive quarter. Although public sector inventory contribution remains absent, thanks to robust corporate investment and a rebound in private consumption, Japan's revised Q4 GDP has successfully avoided a technical recession. The future focus of observation lies in whether private momentum can continue to take the baton after real wages turn positive.