The Japanese economy recorded a 0.2% contraction in gross domestic product in the first quarter of this year, ending in March, its first contraction in a year, according to data released by the Japanese Cabinet Office this morning, Friday, during the Asian session. This contraction was below expectations, compared to a 0.6% growth in the fourth quarter of last year, reflecting the impact of tariffs on the world’s third-largest economy and their impact on exports, particularly the auto sector.
Private consumption, which accounts for more than half of Japan’s economic output, registered no significant growth in the first quarter, compared to expectations of a 0.1% increase. External demand also declined by 0.8%, while exports fell by 0.6%, while imports rose by 2.9%.