AI Data Insight

Latest data indicates that the annual contribution to Japan's real GDP has rebounded to 0.1%. While this marks a shift to positive territory from the previous -0.4% and an escape from recession, the momentum of the rebound is far below market expectations. Constrained by export stagnation due to US-China trade friction, as well as inflation and the Bank of Japan's rate hike (0.75%) suppressing domestic demand, Japan's economic outlook still faces significant downside risks in early 2026.

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