Japan's economy shrinks more than expected as US tariff hit looms
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 16 2025
0mins
Source: Reuters
Japan's Economic Contraction: Japan's economy shrank by an annualized 0.7% in the first quarter of the year, primarily due to stagnant private consumption and declining exports, raising concerns about its recovery amidst U.S. tariffs on trade.
Impact of U.S. Tariffs: The imposition of tariffs by the U.S. is expected to further strain Japan's export-heavy economy, particularly affecting the automobile sector, leading to potential calls for increased fiscal spending and complicating monetary policy decisions by the Bank of Japan.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
