Archive · 17 Nov 2025
Japan's Economy Shrinks 1.8% in Q3 Due to U.S. Tariffs
Japan's economy shrank because of U.S. tariffs on exports, but it's not as bad as expected.
People spent a little more, but businesses didn't invest much.
The government wants to help with a stimulus package.
Japan's GDP shrank 1.8% annually in Q3, first contraction in six quarters
Exports hit by U.S. tariffs, particularly automakers
Private consumption grew 0.1%, capital spending up 1.0%
Economists expect growth to rebound in Q4
PM Takaichi's government plans stimulus package
- Who
- Japan's economy
- What
- shrunk by 1.8% annually in Q3
- When
- July-September 2023
- Where
- Japan
- Why
- due to U.S. tariffs on exports
Temporary Setback
Start of a Recession
Economists' View
Temporary Setback
Economists see this as a temporary setback.
Start of a Recession
Some may view this as the start of a recession.
- GDP Growth (Q2)
- 2.3%
- GDP Contraction (Q3)
- 1.8%
- Private Consumption Growth (Q3)
- 0.1%
- Capital Spending Growth (Q3)
- 1.0%
- Expected GDP Growth (Q4)
- 0.6%
