AI Data Insight
In 2025, the year-on-year contribution of Japan's nominal GDP recorded 4.5%, significantly accelerating from 3.0% in 2024, reflecting the superimposed effects of normalized inflation and Shunto wage hikes. Although real economic growth remains challenged, the expansion in nominal amounts indicates that Japan is gradually emerging from the quagmire of long-term deflation, with structural changes occurring in corporate pricing power and household income expectations.