The latest data released on May 15, 2024, reveals a concerning trend for Japan's economy as its Gross Domestic Product (GDP) shrank by -0.5% in the first quarter of 2024. This follows a modest growth of 0.1% in the previous quarter, signaling a significant shift in economic momentum.
The contrasting figures highlight the fluctuations Japan has experienced, as the growth rate from Q4 2023 has been completely reversed. Analysts are closely studying these changes, as the previous quarter-over-quarter comparison showed a slight positive growth, only to be followed by a notable decline in the subsequent quarter.
Experts attribute this downturn to several factors including global market instability and domestic challenges. Policymakers are now pressured to implement effective measures to stabilize and stimulate the economy, with hopes of reversing the negative trend seen at the beginning of the year. The forthcoming quarters will be critical in determining Japan's economic trajectory for 2024.