Back
16 May 2025
Japan’s economy contracts for the first time in a year as exports fall, shrinking more than expected by 0.2%
Summary: Japan’s economy contracted by 0.2% in the March quarter, driven by a 0.6% decline in exports due to U.S. trade policies. While domestic demand grew by 0.6%, the Bank of Japan remains cautious about the impact of trade policies on economic activity and prices, with inflation surpassing the 2% target for three consecutive years.