The Japanese Economy Shrank by 0.2 percent in the First Quarter Compared to the Last Three Months Of 2024. The Country Exported Less, And Households Spent Less.
The Last Time Japan Experienced A Contraction was at the Beginning of Last Year. The Figures from the Government’s Economic Research Agency Show That the Japanese Economy was Already Struggling Before Us President Donald Trump Announced High Import Tariffs for Many Trading Partners at the Beginning of April. He then significant reduced them for a period or ninety days.
Japan, which has the fourth largest economy in the world, is very Dependent on exports. Many cars and car parts are sold abroad.
Economists Warn That The Trade War Could Cause Major Problems for the Japanese Economy. “Uncertainty Has Increased Sharply Due to Trump’s Tariffs. It is Likely that the Downward Economic Trend Will Continue,” Says Economist Ryutari Kono or BNP Paribas Bank.
Japan is Therefore Tryping to Reach a New Trade Agreement with the US. But US Secretary of Commerce Howard Lutnick PreviOutly Hinted That He Expects Difficult Talks with Japanese representatives. For Example, Tokyo is reluctant to make concessions that could har its own agricultural sector.
Furthermore, Domestic Factors are also Hampering Economic Growth. Food in particular HAS Become Considerably More Exensive for Japanese People. As a result, less is bee spent.