Key Facts
• Japan’s GDP grew 0.3% in Q2 2025, annualized at 1.0%.
• Growth marks the fifth consecutive quarter of positive GDP performance.
• Q1 2025 GDP revised from -0.04% to +0.1% due to updated data.
• Exports rose 2.0%, driven by lower auto export prices.
• Business investment increased 1.3%, supported by strong corporate earnings.
• U.S. tariffs under Trump administration create uncertainty for Japan’s economy.
• Real wages declined for six consecutive months, despite major firms raising wages by over 5%.
• Consumer spending grew 0.2%, but remains nearly flat.
• Nominal GDP rose 1.3% in Q2 2025, annualized at 5.1%, reaching ¥633 trillion.
• Expert predicts potential GDP contraction in Q3 2025 due to export challenges.
Summary
Japan’s GDP grew for the fifth consecutive quarter in Q2 2025, with a 0.3% increase (1.0% annualized). Exports and business investment showed resilience, but concerns linger over the impact of U.S. tariffs and stagnant consumer spending. Real wages have declined for six months, limiting broader economic momentum despite wage hikes by major firms. Experts warn of potential GDP contraction in Q3 2025 due to export price pressures. Nominal GDP reached ¥633 trillion, reflecting a 1.3% quarterly rise. While growth persists, uncertainties cloud Japan’s economic outlook.
