The GDP of Japan contracted by 0.7% in the first quarter before the tariff impacts are seen.

According to a May 16 Kyodo News report, the Japanese Cabinet released the preliminary value of Japan's gross domestic product (GDP) for the first quarter of 2025 (January to March) on the same day. The report stated that based on relevant data calculations, Japan's actual GDP for the first quarter of 2025 decreased by 0.2% compared to the previous quarter (quarter-on-quarter), and at an annualized rate, it fell by 0.7%.

The report noted that this marks the first time in four quarters that Japan's GDP has shown a negative quarter-on-quarter growth.

Observing China found that according to the data provided on the Cabinet Office website, Japan's real GDP was 142.01 trillion yen (approximately RMB 7.05 trillion) in the first quarter of 2025, while in the first quarter of 2024, it was 139.66 trillion yen (approximately RMB 6.93 trillion). Its year-on-year nominal growth rate (not considering price changes) was about 1.7%.

The real GDP statistics published by the Cabinet Office are quarterly statistics, with units in 1 billion yen.

According to the analysis of the "Nikkei Asian Review," the decline in Japan's GDP this quarter is mainly due to weak consumption caused by high prices. In addition, the reduction in Japan's exports (down 0.6%) and the increase in imports (up 2.9%) have also hindered economic growth.

In a report issued on Tuesday, Takahide Kiuchi, chief economist at Nomura Research Institute, pointed out that since the end of last year, the sharp rise in rice and fresh vegetable prices has severely weakened consumer spending.

The results of the first quarter show that before the U.S. implemented tariff measures in April, Japan's economy had already shown signs of weakness. Kiuchi said that the impact of tariffs "may become more evident in the second quarter and will further push Japan's economy toward recession."

The detailed situation of Japan's GDP growth rate for the first quarter as reported by the "Nikkei Shimbun." The figures in parentheses represent the data from the fourth quarter of 2024, indicating a negative number. Nikkei Shimbun

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Source: https://www.toutiao.com/article/7504865916841132581/

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