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The
decline in Japan’s gross domestic product, or the sum value of
its goods and services, translates to a 0.6% on-quarter fall,
and marked a lowered revision from the preliminary data released
last month, which had shown a drop of 1.8% at an annual rate, or
0.4% on-quarter, according to the Cabinet Office.
The annualized rate shows what the economy would have done if
the same rate were to continue for a year.
Exports dropped 1.2% in the quarter compared to the previous
quarter, unchanged from the preliminary figure, while private
residential investment fell 8.2%, slightly less than the 9.4%
fall seen in the earlier data.
Trump implemented higher tariffs on imports from many countries
earlier this year.
In September, the U.S. lowered the tariffs surcharge on nearly
all Japanese imports to 15% from an earlier plan for a 25%
tariff. The tariffs on autos are a serious blow to Japan’s
economy. Japan has promised to invest $550 billion in the United
States, in an accommodating move announced during the tariff
negotiations.
Analysts say the drop in private residential investment observed
in the July-September quarter was mainly due to revisions of
Japan’s building code that caused housing starts to plunge from
earlier this year.
Imports slipped 0.4% during the quarter, while private
consumption gained 0.2%, according to revised data.
The tariffs have strained bilateral ties between Japan and the
U.S., its most important alliance partner.
Japan now has its first female prime minister, Sanae Takaichi,
who remains popular, partly because of her assertive
nationalist-leaning comments. She is also fostering hopes for an
economic revival, although prospects remain unclear.
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