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Japan Q1 GDp -0.2% q/q (expected -0.1%) | Forexlive

Japanese economic growth data for Q1 2025 (January – March) – recovery in Japan proving tenuous once again

-0.2% q/q for real GDP

  • vs. expected -0.1% and prior +0.6%

-0.7% annualised q/q, first fall in a year

  • expected -0.2%, prior +2.4%

Private Consumption 0.0% q/q

  • expected +0.1%, prior +0.1%

Capital Expenditure +1.4% q/q a bright point in the data

  • expected +0.8%, prior +0.8%

More:

  • External demand contribution to GDP -0.8%, vs. expected -0.6%
  • Exports -0.6% q/q
  • Domestic demand contribution to GDP +0.7%
  • GDP deflator +3.3% y/y (this is an inflation indicator)

A shrinking economy … even before the trade war hit in force … is going to cause consternation at the Bank of Japan. It’ll delay further rate hikes.

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