FX.co ★ Japan's GDP Contracts Further in Third Quarter, Marking -0.6% Decline

In the third quarter of 2025, Japan's GDP contracted by 0.6%, deepening the economic downturn from the previous quarter's -0.4% decline, according to updated data released on December 7, 2025. This negative growth highlights ongoing challenges within the Japanese economy as it continues to grapple with both domestic and external pressures.

The quarter-over-quarter comparison reveals a worrisome trend, as the economic contraction has worsened over the past three months. The latest figures suggest that Japan is struggling to regain momentum amid global economic uncertainties and domestic policy challenges.

This downward trajectory in GDP growth puts additional pressure on policymakers to implement effective measures to stimulate the economy and counteract this negative trend. Analysts will now be closely watching both domestic initiatives and international developments to gauge their potential impact on reversing Japan's economic fortunes in the forthcoming quarters.