Japan's GDP Expected to Confirm Economic Contraction in Early 2025

According to Odaily, economists anticipate that Japan's revised GDP data, set to be released next week, will likely confirm an economic contraction in the first quarter of 2025. A corporate survey published on Monday suggests that capital expenditure may not undergo significant adjustments. Preliminary data released in mid-May indicated a 0.7% annualized contraction in real GDP for the January-March period. Takeshi Minami, an economist at Norinchukin Research Institute, stated that the economy might shrink for a second consecutive quarter during the current April to June period. This is attributed to wage growth failing to keep pace with the persistent rise in food prices, including rice, leading to potentially subdued consumer spending. Additionally, tariffs imposed by U.S. President Donald Trump are expected to continue exerting pressure on exports and capital investment.