Japan economy contracts less than expected in September quarter
Tokyo, Japan skyline with Tokyo Tower
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japan economy It contracted by a less-than-expected 0.4% in the quarter ending September compared to the previous three months.
Economists polled by Reuters had expected a decline of 0.6 percent.
On an annual basis, Japan’s GDP fell 1.8% for the third quarter of 2025; This is a softer decline compared to forecasts of a 2.5% contraction.
Exports of goods and services contracted by 1.2% compared to the second quarter, reversing the 2.3% increase in the previous three months. Net exports contributed to the 0.2 percentage point decline in GDP.
Private demand was the biggest drag on GDP this quarter; It decreased by 0.4% compared to the previous quarter and brought the GDP down by 0.3 points.
Public demand was a bright spot, rising 0.5% quarter on quarter, contributing 0.1 percentage points to the Japanese economy.
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