The japanese economy shrank 1.8 percent from the same quarter last year as u.s Tariffs dampened automobile exports and prompted a bleak outlook for growth. Japan’s economy sank at an annualised rate of 1.8% in the july to september period, government data showed on monday, as president donald trump’s tariffs sent the nation’s exports spiralling. This marks the first economic shrinkage in six quarters Exports fell significantly due to u.s However, the contraction was less severe than anticipated
The bank of japan will consider these factors for its next interest rate decision. Japan’s economy contracted less than expected in q3 2025 as domestic consumption offset weak exports, though trade tensions, housing pressures, and strained china relations continue to pose risks.
WATCH
