Japan's economy shrinks more than expected – DW – 05/16/2025
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New economic data shows stagnant consumption and falling exports are weighing heavily on Japan's economy. And US President Trump's tough trade polices are not expected to make things better.

Japan’s economy contracted at a higher pace than expected in the first quarter of 2025, according to official data for the January to March period released on Friday.

Japan’s Gross Domestic Product (GDP) contracted by 0.2% compared to the previous quarter, the first quarterly drop since the January-March period in 2024.

However, compared with the same quarter in the previous year, Japan’s economy shrank by 0.7% — much steeper than the forecast 0.2% contraction.