Latest Japan Economy Updates: GDP Growth Report and US-Japan Summit to Strengthen Cooperation

Japan’s GDP Preliminary Figures Released

On January 3rd, the Bank of Japan announced the preliminary GDP figures for October to December 2025, showing positive growth compared to the previous quarter. This indicates that Japan’s economy is on a recovery track, boosting investor confidence.

Inflation remains around 3%, which could influence the Bank of Japan’s monetary policy decisions. Market watchers are especially paying attention to upcoming employment data for further clues.

US-Japan Leaders’ Phone Call and Prime Minister Takashi’s US Visit Planning

On January 2nd, Prime Minister Sanae Takashi and the U.S. President held a phone call. Both leaders agreed to deepen cooperation between Japan and the U.S. and are working on scheduling Prime Minister Takashi’s visit to the United States.

This conversation highlights efforts to strengthen economic and security ties, which has been positively received by markets, leading to a boost in stock prices.

Semiconductor Industry Expanding Production Capacity

Major semiconductor companies like Renesas Electronics are ramping up production. The yen’s recent depreciation has made exports more competitive, giving a boost to Japanese tech and semiconductor exports.

The tech and semiconductor sectors remain key market drivers. News from leading companies continues to influence investor sentiment and market trends.

Year-End Travel Rush and Its Impact on the Economy

On January 3rd, peak travel congestion was reported across transportation networks. Highway traffic on the Tohoku Expressway was expected to reach up to 35 km of traffic jams, and Shinkansen trains were nearly fully booked.

This surge in travel boosts retail and service industries, as returning travelers spend on shopping and dining, helping to energize the economy.

• Tokyo to Osaka Shinkansen “Nozomi”: Fully booked all day
• Tohoku Shinkansen: Peak travel on January 3rd
• Air travel: JAL domestic flights peak today, ANA flights tomorrow

Financial Policy Outlook and Market Trends

The Bank of Japan’s monetary policy will continue to depend on inflation trends. If inflation stays around 3%, discussions about further interest rate hikes may gain momentum.

Overall economic indicators are aligned, leading investors to adopt a cautious stance. Moving forward, the tech sector’s performance will be a key factor to watch.