Japan’s GDP Revised to 2.3% Contraction in Q3 2025 as Tariffs Bite and BoJ Eyes Rate Hike
Japan’s economy shrank at an annualised rate of 2.3% in July–September, worse than the initial 1.8% estimate, with real GDP down 0.6% quarter-on-quarter. Capital expenditure fell 0.2% instead of rising, while exports dropped 1.2%. Despite the contraction, most analysts still expect the Bank of Japan to raise rates at its December meeting.