How much is Japan's economy under pressure? Let's dive in 📉
In the third quarter of 2025, Japan's GDP shrank 1.8% year-on-year, marking its first decline in six quarters. This unexpected dip has rattled markets and left policymakers on alert.
Key factors weighing on growth include:
- Domestic demand slowdown: Consumers are tightening their belts as living costs rise.
- Export challenges: Global trade is cooling, hitting auto and electronics shipments.
- Tourism slump: Political tensions with the Chinese mainland and recent travel warnings ✈️ have kept visitors away.
These headwinds come at a tricky time for Japan's leaders, who are juggling inflation control, wage growth and structural reforms to reignite momentum. Younger generations are watching closely — will Tokyo's policy playbooks spark a rebound, or will the chill last into next year?
Stay tuned as we track whether fresh incentives, international deals and consumer confidence can turn the tide for Japan's economy. 💪
Reference(s):
cgtn.com
