Japan's economy faces new challenges as the nation's GDP, specifically from external demand, takes a downward turn in the third quarter of 2025. According to data updated on November 16, 2025, the GDP change in external demand fell to -0.2% compared to the previous quarter, a noticeable dip from the 0.2% growth recorded in the second quarter of 2025.
This shift signals a reversal in external demand performance, as the second quarter had presented a positive growth period when compared to its preceding quarter. The updated figures reflect a quarter-over-quarter comparison, underscoring the challenging economic environment and potential impacts on Japan's broader recovery and growth strategies.
Economic observers will be closely watching how Japan navigates this decline in external demand, especially in light of global economic fluctuations, to reassess strategies and consider adjustments in trade and policy to stabilize and stimulate growth in the upcoming quarters.
