|
The
annualized rate shows what the economy would have done if the
same rate were to continue for a year.
In the April-June quarter, the Japanese economy grew 0.6% on
quarter, while in the January-March period, it grew 0.2%..
Exports fell 4.5% in annual terms in the three months through
September.
As Trump implemented higher tariffs on imports from many
countries earlier this year, businesses ramped up their exports
to try to beat higher costs. That inflated some of the earlier
data for exports.
Imports for the third quarter slipped 0.1%. Private consumption
edged up 0.1% during the quarter.
Analysts said a 9.4% quarter-on-quarter drop in private
residential investment, which translates to a 32.5% drop in
annualized terms, was mainly due to revisions of Japan's
building code that caused housing starts to plunge after they
took effect in April, the start of Japan's fiscal year.
Tariffs are a major blow to Japan’s export-reliant economy, led
by powerful automakers like Toyota Motor Corp., although many
manufacturers have moved production abroad to avert the impact
from tariffs and other trade controls.
The U.S. imposes a 15% tariff surcharge on nearly all Japanese
imports. That's down from Trump's earlier plan for a 25% tariff.
Prime Minister Sanae Takaichi, who took office in October, has
vowed to revive the economy and is expected to boost government
spending, among other policies. That could complicate the
central bank's efforts to rein in inflation by raising interest
rates from their longstanding level near zero.
The lackluster level of activity in the last quarter means a
possible rate hike in December is unlikely, Marcel Thieliant of
Capital Economics said in a report.
But initial data for this quarter and surveys of business
sentiment suggest the economy may improve in coming months, and
the Bank of Japan may resume raising interest rates early in
2026, he said.
All contents © copyright 2025 Associated Press. All rights reserved
|
|
