Japanese economic contraction in Q3 2025<\/p>\n
–<\/p>\n
Japan\u2019s economy contracted less than expected in the third quarter, with GDP falling 0.4% quarter-on-quarter versus forecasts for a 0.6% decline. On an annualised basis, output shrank 1.8%, also better than the expected 2.5% drop, as a soft global backdrop and sluggish domestic conditions continued to weigh on activity.<\/p>\n
GDP q\/q preliminary -0.4%<\/p>\n
expected \u20130.6%, proir 0.5%<\/p>\n
– GDP Annualised -1.8%<\/p>\n
expected \u20132.4%, prior 1.6%<\/p>\n
The breakdown showed a mixed picture:<\/p>\n
Private consumption \u2014 roughly half of Japan\u2019s economy \u2014 barely grew, rising just 0.1%, exactly in line with expectations and highlighting households\u2019 ongoing caution in the face of still-elevated prices:expected 0.1%, prior 0.4% Capital expenditure, however, provided a rare bright spot, expanding 1.0% and beating the 0.3% consensus as firms continued to invest despite weaker demand:expected 0.3%, prior 0.6%External demand remained a drag. Net exports shaved 0.2 percentage points off growth, with exports down 1.2% quarter-on-quarter amid global softness and the lingering impact of trade tensions:expected -0.2%, prior 0.3%Domestic demand also subtracted 0.2 points, illustrating how both internal and external engines of growth stalled simultaneously.<\/p>\n
The GDP deflator rose 2.8% year-on-year, underscoring persistent underlying inflation as the Bank of Japan assesses whether price gains are durable enough to justify further policy normalisation:<\/p>\n
expected 2.8%, prior 3.0%<\/p>\n","protected":false},"excerpt":{"rendered":"Japanese economic contraction in Q3 2025 – Japan\u2019s economy contracted less than expected in the third quarter, with…\n","protected":false},"author":2,"featured_media":246798,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,110295,56,54,55],"class_list":{"0":"post-266974","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-japanese-economic-contraction-gdp","11":"tag-uk","12":"tag-united-kingdom","13":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/266974","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=266974"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/266974\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/246798"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=266974"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=266974"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=266974"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}