Japan’s economy contracted by 0.7% in the first quarter of 2025, driven by weak consumer spending due to inflation and increased imports. Private consumption rose slightly, while exports fell and imports expanded. Economists anticipate further slowdown in growth, contingent on progress in negotiations with the United States regarding tariffs.
by SkyInJapan
9 comments
There’s no miracle for Japanese domestic residents making spend more. I see so many housewives stand and hesitate buying minimum needed fish, meat, vegetables and expensive rice.
Here we go again.
Fix the rice problem. It’s more than just a single market, it’s an econ killer. The central government has really screwed this up. Get it back down to 2022 prices and watch gdp soar.
Oh boy here we go again
I know! Let’s elect a DPJ coalition, let them flounder impotently a couple of years, then put LDP back in power where they can keep doing the same dumb corrupt shit for a few more decades.
Do you know what time it is? Time for a new round of price increases!
The Japanese culture is a bit unique, because of the lost decade, the people aren’t willing to spend more due to the fear of losing what they invested. Now they aren’t spending more because everything is so expensive. The government hasn’t exactly put anything that makes the population trust in the economy….
A couple of years ago the usual topic people around me talked about were where to eat or where to drink etc. Now it’s where can you get rice/meat/vegetables the cheapest. Even people that isn’t really in a worse position have started to spend less, because it’s kind of in the air, people worry about the future.
> while exports fell and imports expanded
This makes no sense. The weak yen should boost exports as stuff Japan makes is cheaper to everyone else, while it should reduce imports and everyone else’s goods are more expensive.