TOKYO, March 10 (Xinhua) -- Japan's gross domestic product expanded at an annualized rate of 1.3 percent in price-adjusted real terms in the fourth quarter of 2025, the Cabinet Office said Tuesday.

Pedestrians walk across a street near Tokyo Station in Tokyo, Japan, May 15, 2025. (File photo: Xinhua)

The figure was revised up from an initially reported increase of 0.2 percent, driven up by stronger business investment and private spending.

In nominal terms, the country's GDP grew at an annualized rate of 3.5 percent, revised up from an initial reading of 2.3 percent.

Local media noted that the Middle East conflict cast a shadow over the growth outlook.