Japan Economy Projected to Have Contracted in 3rd Quarter

Tokyo, Nov. 6 (Jiji Press)–Japan’s economy is projected to have shrunk for the first time in six quarters in July-September, hit by U.S. President Donald Trump’s tariffs, private think tanks said. The country’s inflation-adjusted gross domestic product is projected to have fallen at an annualized rate of 2.5 pct in the third quarter of 2025, according to an average estimate from 10 think tanks. The Cabinet Office is scheduled to release preliminary GDP data for the three months on Nov. 17. Exports are forecast to have shrunk 2.2 pct from the previous quarter, with fewer shipments of cars and auto parts to the United States because of steep tariffs. Personal consumption is expected to have remained almost flat as the impact of high prices offset increased summer bonuses. Capital investment is projected to have risen 0.1 pct. Housing investment is believed to have plunged 7.8 pct following a surge before energy-saving standards were tightened. Exports are likely to bottom out in October or later, said Shinichiro Kobayashi, chief researcher at Mitsubishi UFJ Research and Consulting Co. “If domestic demand is strong, GDP will rebound in the October-December period or beyond,” he said. END [Copyright The Jiji Press, Ltd.]