Japan GDP drops 1.8% YoY in Q3; domestic demand weaker, exports slack

The fall, however, was less pronounced than expected.

While private consumption rose by 0.1 per cent and corporate investments were up by 1 per cent QoQ in the quarter, weaker domestic demand and sluggish exports drove the overall decline, according to domestic media reports.

A GDP decline is not expected in Q4 2025—unless tensions with China escalate further. Therefore, a recession is not expected.

Exports, which rose by 2.3 per cent in Q2 2025— fell by 1.2 per cent in Q3, while imports dropped by 0.1 per cent due to reciprocal US tariffs.

ALCHEMPro News Desk (DS)