Japan's economy witnessed a surprising downturn in its external demand for the first quarter of 2025. The latest data reveal a significant drop in the GDP external demand indicator to -0.8%, plunging from the 0.7% observed in the last quarter of 2024. This sharp decline signals a shift in Japan's economic momentum, particularly in the external sector.
This downturn marks a notable departure from the growth trend seen in the previous quarter, where the economic indicator had improved by 0.7% quarter-over-quarter. This upswing was indicative of a robust external demand that had fueled optimism towards Japan's economic recovery.
Updated on May 15, 2025, these figures highlight the challenges Japan faces in maintaining its economic stability amidst global uncertainties. Analysts and policymakers are now closely observing whether this reduction in external demand will have broader implications for Japan's overall economic health in 2025.
