Japan's economy likely contracted in Q1 due to soft domestic demand and import surge

From Yahoo Finance: 2025-05-01 23:58:00

Japan’s economy likely contracted for the first time in a year in the first quarter, with GDP forecasted to have shrunk by 0.2%. Private consumption inched up only 0.1%, as rising food costs deterred spending. Capital expenditure, however, rose by 0.8% due to strong corporate performance. Export growth was positive, but imports outpaced exports, resulting in a negative impact on GDP. The Bank of Japan decided to maintain interest rates and cut growth forecasts, citing uncertainty over U.S. tariffs. Rising trade tensions have led to a downgrade in global growth forecasts by the IMF.



Read more at Yahoo Finance: Japan Q1 GDP likely contracted on soft domestic demand, import surge: Reuters poll