AI Data Insight

Japan's change in private inventories for nominal GDP in the fourth quarter of 2025 shrank significantly to -1647.7 billion JPY, turning sharply negative from 1030.4 billion JPY in the third quarter. Although inventory destocking weighed on overall economic growth, final demand excluding inventory effects remained strong, driving an upward revision in real GDP growth. Looking ahead, positive real wages are expected to sustain the recovery momentum, though risks of oil price volatility triggered by geopolitical tensions warrant attention.

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