Japan's economy showed marginal growth of 0.2% in Q4, falling short of market expectations and highlighting ongoing economic challenges. The weak performance underscores persistent issues with consumer spending and business investment, as private consumption rose just 0.1% amid high food costs. Prime Minister Sanae Takaichi's government is preparing targeted public spending to boost economic security, while the Bank of Japan continues its cautious approach to monetary policy. Economists are closely watching upcoming wage negotiations as a potential catalyst for sustainable economic growth. The modest expansion signals Japan's economic recovery remains fragile, with key sectors like exports and domestic demand struggling to gain significant momentum.
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