Japan's economic growth rate has returned to negative territory. This is due to the tariff war initiated by the Donald Trump administration in the United States.
On the 16th, Japan's Cabinet Office announced that the real Gross Domestic Product (GDP) in the first quarter of this year declined by 0.2% compared to the previous quarter and on an annualized basis by 0.7%.
This performance is worse than expert expectations, which predicted a decrease of 0.1% compared to the previous quarter and 0.2% on an annualized basis.
Japan's GDP growth rate turned negative again after four quarters since the first quarter of last year.
The Nihon Keizai Shimbun noted that "the U.S. tariff policy has increased uncertainty in the external environment, and domestic consumption was also insufficient due to high prices."
Personal consumption, which accounts for more than half of GDP, remained unchanged with a 0.04% increase compared to the previous quarter. During the same period, exports decreased by 0.6%, turning negative after four quarters. In contrast, imports increased by 2.9%, dragging down the growth rate.