Economy Politics Country 2025-12-08T10:39:38+00:00

Japan's Economy Contracts More Than Expected

Japan's Q3 2025 GDP fell an annualized 2.3%, significantly worse than initial estimates. Private consumption rose, but investment and external demand fell, signaling economic instability.


Japan's Economy Contracts More Than Expected

Private consumption, which represents more than half of the economy, rose a revised 0.2% in the July-September period, slightly exceeding the initial estimate of 0.1%. However, capital investment, a barometer of private demand, fell 0.2%. This figure is also a downward revision, as the preliminary reading had been a 0.4% decline. Analysis of key economic components showed significant changes after the revision. This figure represents a marked downward revision from the initial estimate, which had forecast a 1% increase, suggesting greater caution in business spending than was thought. Meanwhile, external demand (exports minus imports) subtracted 0.2 percentage points from GDP, unchanged from the preliminary reading. Buenos Aires, Dec 8 (NA) – Japan's Cabinet Office released revised data showing a deeper contraction in the economy in the third quarter of 2025. Real annualized GDP contracted 2.3%, representing a larger decline than the initially reported 1.8% contraction. This revised figure marks the fastest contraction recorded in the Japanese economy since the third quarter of 2023, Argentina's news agency was informed. In the three-month period ending in September, real GDP, adjusted for inflation, contracted 0.6% compared to the previous quarter.