TOKYO, 16th May, 2025 (WAM) – Japan's economy shrank an annualised real 0.7 percent in the January-March period, marking the first contraction in four quarters, as consumer spending remained weak due to inflation and increased imports weighed on growth, government data showed Friday.
In the first quarter of 2025, real gross domestic product, adjusted for inflation, declined 0.2 percent from the October-December period, the Cabinet Office said.
Exports fell 0.6 percent, marking the first decline in four quarters, weighed down by a decline in charges for the use of intellectual property rights, and research and development services.
Meanwhile, imports, whose growth impacts GDP negatively, expanded 2.9 percent, driven by aircraft and payments for online advertising.
On quarter, private consumption, which accounts for more than half of the economy, rose for the fourth consecutive quarter, inching up 0.04 percent as inflation continued to outpace wage hikes.