FX.co ★ Japan Q1 GDP Shrinks More than Expected

In the first quarter of 2025, Japan's Gross Domestic Product (GDP) experienced a decline of 0.2% quarter-on-quarter, diverging from market predictions of a 0.1% contraction. This follows a 0.6% expansion in the fourth quarter of 2024, as indicated by preliminary data. This decline represents the first quarterly decrease in a year, primarily driven by apprehensions surrounding U.S. trade policies under President Donald Trump. On an annualized scale, the GDP fell by 0.7%, surpassing the anticipated 0.2% reduction and reversing an upwardly revised 2.4% growth in the previous quarter. This signifies the first annual decline in a year.