Japan's economy shrinks more than expected as US tariff hit looms
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 16 2025
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Should l Buy ?
Source: Reuters
Japan's Economic Contraction: Japan's economy shrank by an annualized 0.7% in the first quarter of the year, primarily due to stagnant private consumption and declining exports, raising concerns about its recovery amidst U.S. tariffs on trade.
Impact of U.S. Tariffs: The imposition of tariffs by the U.S. is expected to further strain Japan's export-heavy economy, particularly affecting the automobile sector, leading to potential calls for increased fiscal spending and complicating monetary policy decisions by the Bank of Japan.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
