💨 Abstract

The Japanese economy shrunk by 0.7% annually in Q1 2025, largely due to Trump's trade policies impacting exports and consumer confidence. Exports dropped by 2.3%, while consumer spending stagnated and capital investment rose by 5.8%. This contraction, influenced by a declining and aging population, along with Trump's volatile trade policies, may delay the Bank of Japan's planned interest rate hikes.

Courtesy: wtop.com