Japan's economy faced a setback in the July-September quarter, shrinking by an annualized 1.8%. This marks the first contraction in six quarters, primarily due to export disruptions from U.S. tariffs, according to government data released on Monday. Despite these challenges, the contraction was less severe than economists anticipated.

Economist Kazutaka Maeda from Meiji Yasuda Research Institute highlighted that the decline was influenced by temporary factors, such as changes in housing investment regulations. Despite lacking strong momentum, the economy is anticipated to gradually recover over the next couple of years, Maeda suggested.

The contraction was prompted by reduced exports, with automakers witnessing a significant downturn. However, private consumption showed a slight increase

See Full Page