Economist: Japan's revised GDP data may confirm economic contraction in the first quarter

Odaily News Economists say Japan's revised GDP data due next week is likely to confirm that the economy shrank in the first quarter of 2025. A business survey released on Monday showed there may not be a major adjustment in capital spending. Preliminary data released in mid-May showed that real GDP contracted 0.7% on an annualized basis in the January-March quarter. "The economy is likely to contract for a second straight quarter in the current April-June period as wage growth has not kept up with continued increases in food prices, including rice, consumer spending is likely to remain sluggish, and Trump's tariffs are expected to continue to weigh on exports and capital investment," said Takeshi Minami, an economist at Norinchukin Economic Research Institute. (Jinshi)