Japan’s Revised Q4 GDP Jumps to 1.3%, Strengthening BOJ Case for Rate Hikes
Rising oil prices linked to Middle East tensions inject fresh uncertainty into the timing of any further tightening.
Overview
- An official revision lifted annualized real growth to 1.3% for Q4 2025, up from a 0.2% preliminary estimate released about 20 days earlier.
- Quarter-on-quarter GDP increased 0.3% in the revised reading, signaling firmer late-year momentum.
- Business investment rose 1.3% from the prior quarter, well above the initial 0.2% estimate.
- Private consumption was upgraded to 0.3% quarter over quarter from 0.1% initially.
- BOJ Governor Kazuo Ueda said last week the bank will raise rates as needed, with stronger data reinforcing that stance as higher oil prices threaten to lift inflation expectations.