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Decline in exports leads Japan’s GDP to contract by 0.4% in the 3rd quarter.

Exports declined by 1.2%, in contrast to a 2.3% increase in the previous quarter, while imports also decreased by 0.1%, compared to a 1.3% rise in the previous quarter.

Compared to the same period last year, the world’s fourth-largest economy recorded a gross domestic product (GDP) growth of 1.1%, according to a preliminary report published today by the Asian country’s government office.

In the first two quarters of 2025, Japan’s GDP saw a consecutive growth of 0.2% and 0.6%, based on revised government data.

Among the factors contributing significantly to the contraction of the indicator is a reduction in domestic demand, led by a 9.4% decrease in real estate investment, against a 0.3% increase in the previous quarter.

Moreover, private consumption, which accounts for nearly 60% of the Japanese economy, remained almost stable, with a slight increase of 0.1% compared to the 0.4% growth recorded between April and June.

Corporate investment also increased by 1%, and public investment grew by 0.1% between July and September.

On an annual basis, the Japanese economy continues its growth trajectory, supported by the recovery of household consumption after years of stagnation, showing a 0.8% increase.

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