Japan’s economy shrank at an annualized rate of 2.3% during the July-September period, according to revised government data released Monday. This marks a deeper contraction than the initially reported 1.8% decline and reflects a quarterly drop of 0.6% in gross domestic product (GDP). The downward revision stems from weaker-than-expected exports and a continued slump in public and private investment. n nExports declined by 1.2% compared to the prior quarter, unchanged from preliminary figures, as U.S. trade policies under President Donald Trump continue to affect Japanese manufacturers. Notably, tariffs on Japanese goods, particularly automobiles, have created headwinds for the export sector. Although the U.S. reduced planned tariffs on most Japanese imports from 25% to 15% in September, the economic impact remains significant. In response, Japan pledged $550 billion in investments in the United States during bilateral negotiations. n nPrivate residential investment fell by 8.2%, an improvement over the previously estimated 9.4% drop. Analysts attribute the decline primarily to recent changes in Japan’s building regulations, which led to a sharp reduction in new housing starts earlier in the year. Meanwhile, imports dipped 0.4%, and household spending edged up 0.2%, indicating modest resilience in domestic demand. n nThe revised figures highlight ongoing challenges for Japan’s economic recovery, especially as trade tensions with its key ally, the U.S., strain diplomatic and commercial relations. The country recently inaugurated Sanae Takaichi as its first female prime minister, whose nationalist rhetoric has bolstered her popularity. She has emphasized economic revitalization, though the path forward remains uncertain. n— news from ABC News n
— News Original —nJapan revises economic data to show bigger contraction in July-September periodnTOKYO — Japan’s economy contracted at an annual pace of 2.3% in the July-September period, the government reported Monday, as exports suffered from the impact of U.S. President Donald Trump’s tariffs and public investments slipped. n nThe decline in Japan’s gross domestic product, or the sum value of its goods and services, translates to a 0.6% on-quarter fall, and marked a lowered revision from the preliminary data released last month, which had shown a drop of 1.8% at an annual rate, or 0.4% on-quarter, according to the Cabinet Office. n nThe annualized rate shows what the economy would have done if the same rate were to continue for a year. n nExports dropped 1.2% in the quarter compared to the previous quarter, unchanged from the preliminary figure, while private residential investment fell 8.2%, slightly less than the 9.4% fall seen in the earlier data. n nTrump implemented higher tariffs on imports from many countries earlier this year. n nIn September, the U.S. lowered the tariffs surcharge on nearly all Japanese imports to 15% from an earlier plan for a 25% tariff. The tariffs on autos are a serious blow to Japan’s economy. Japan has promised to invest $550 billion in the United States, in an accommodating move announced during the tariff negotiations. n nAnalysts say the drop in private residential investment observed in the July-September quarter was mainly due to revisions of Japan’s building code that caused housing starts to plunge from earlier this year. n nImports slipped 0.4% during the quarter, while private consumption gained 0.2%, according to revised data. n nThe tariffs have strained bilateral ties between Japan and the U.S., its most important alliance partner. n nJapan now has its first female prime minister, Sanae Takaichi, who remains popular, partly because of her assertive nationalist-leaning comments. She is also fostering hopes for an economic revival, although prospects remain unclear. n n___