AI Data Insight
In the fourth quarter of 2025, the contribution of domestic demand to real GDP turned positive to 0.1% (previous value -0.3%), barely pulling the economy out of negative growth. However, private consumption increased by only 0.1%, falling short of expectations, indicating that sticky inflation continues to suppress purchasing power. The market is highly focused on the Shunto wage negotiation results and the government's potential tax cut measures to rescue the market.