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Japan’s economy shrank at an annual pace of 2.3% in the July-September period, the government reported on Monday, as the impact of US President Donald Trump’s tariffs hit exports and plunged public investment.
The decline in Japan’s gross domestic product, or the total value of its goods and services, translated to a quarter-on-quarter decline of 0.6%, and marked a downward revision from preliminary data released last month, which had shown a decline of 1.8% on an annualized rate, or 0.4% on a quarterly basis. cabinet Office,
The annual rate shows what the economy would have done if the same rate had continued for one year.
Exports declined 1.2% in the quarter compared with the previous quarter, unchanged from preliminary data, while private residential investment fell 8.2%, slightly less than the 9.4% decline seen in earlier data.
Trump imposed higher tariffs on imports from several countries earlier this year.
In September, America reduced tariff surcharges on almost all Japani Imports up 15% from earlier plan for 25% tariff. The tariffs on autos are a serious blow to Japan’s economy. In an accommodative move announced during tariff talks, Japan has pledged to invest $550 billion in the United States.
Analysts say the decline in private residential investment in the July-September quarter was mainly due to amendments to Japan’s building code, which triggered a decline in housing starts earlier this year.
According to the revised data, imports declined by 0.4% during the quarter, while private consumption increased by 0.2%.
The tariffs have strained bilateral relations between Japan and its most important alliance partner, the United States.
Japan now has its first female Prime Minister, Sanae TakaichiShe remains popular partly because of her outspoken nationalist-leaning comments. She is also raising hopes of an economic revival, although the prospects remain unclear.
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