TOKYO (AP) — Japan’s economy shrank at an annual rate of 2.3% from July to September, the government said Monday, as exports were hit by the impact of U.S. President Donald Trump’s tariffs and a drop in public investment.
The decline in Japan’s gross domestic product, or the total value of goods and services, amounted to a 0.6% quarter-on-quarter decline, a downward revision from the previous year. Preliminary data released last monthAccording to the Cabinet Office, the decline was 1.8% on an annual basis and 0.4% on a quarterly basis.
The annual percentage rate shows what would happen to the economy if the same interest rate continued for one year.
Exports fell by 1.2% in the quarter Quarter-on-quarter, there was no change from preliminary figures, but private housing investment fell by 8.2%, slightly lower than the 9.4% decline seen in previous data.
Earlier this year, President Trump imposed additional tariffs on imports from many countries.
In September, the US lowered additional tariffs on almost all Japanese imports. Tariffs will be increased to 15% from the previous 25% plan. Car tariffs are a serious blow Also for the Japanese economy. Japan It pledged to invest $550 billion in the United States in generous measures announced during tariff negotiations.
Analysts say the decline in private housing investment observed in the July-September period was mainly due to revisions to Japan’s building standards law, which have seen a sharp decline in housing starts since the beginning of this year.
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According to the revised data, imports fell by 0.4% in the quarter, while personal consumption rose by 0.2%.
The tariffs strained bilateral relations between Japan and the United States, its most important alliance partners.
Japan now has Sanae Takaichi, the first female prime minister. Her popularity is partly due to her aggressively pro-nationalist comments. She also fosters hope for economic recovery, although the outlook remains uncertain.
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