Japan's real GDP declined at an annualized rate of 1.8% in the three months through September, marking the first contraction in six quarters. The drop was less severe than anticipated.
Japan's real gross domestic product declined at an annualized rate of 1.8% in the three months through September, the first contraction in six quarters. Economists polled by Reuters had anticipated a 2.5% fall, making the actual decline less pronounced than expected.
On a quarter-on-quarter basis, the third-quarter figure was down 0.4%. While private consumption rose by 0.1% and corporate investments increased 1% from the previous quarter, weaker domestic demand and sluggish exports drove the overall downturn. Tariffs and flagging domestic demand contributed to the GDP drop.
The data, released on November 17, 2025, highlights ongoing challenges in the Japanese economy amid persistent inflation pressures.