FX.co ★ Japan's Economic Momentum Reverses: GDP Rockets to 2.2% in Q2 2025

In a remarkable turnaround, Japan's economy has surged ahead with an annualized GDP growth of 2.2% for the second quarter of 2025, a significant reversal from the previous quarter's contraction of -0.2%. This positive development was confirmed in the latest data update released on September 7, 2025.

The second quarter figures mark a promising recovery in economic activities, breaking free from the stagnation experienced in the first quarter of the year. Analysts observed that this improvement is a testament to the robustness of domestic markets and potentially increased export activity, which have combined to buoy Japan's economic landscape.

The quarter-over-quarter comparison highlights a dramatic recovery, reflecting a resurgence in consumer spending and industrial output. This economic upswing in Japan could potentially herald a stabilization period for the global economy, ushering in renewed investor confidence and offering a bright outlook for the remainder of the year. As Japan continues to navigate post-pandemic challenges, these GDP figures may prove instrumental in shaping fiscal and economic policy directions in the months to come.