AI Data Insight
Japan's nominal GDP annual growth rate reached 4.5% in 2025, accelerating significantly from 3.0% in 2024, indicating the economy has emerged from the quagmire of long-term deflation. This growth was primarily driven by a 5.3% wage increase from the Shunto negotiations and persistent inflation. Although real consumption remains weak, the expansion in nominal figures has supported corporate profits and the Bank of Japan's confidence to raise interest rates.