FX.co ★ Japan’s GDP Plunges by 2.0% in Q1 2024, Marking a Stark Reversal from Previous Growth in Q4 2023

Japan’s economy witnessed a significant downturn in the first quarter of 2024, with the Gross Domestic Product (GDP) contracting by 2.0%, according to data updated on May 15, 2024. This marks a stark contrast to the modest growth of 0.4% recorded in the fourth quarter of 2023.

The unexpected economic decline was analyzed on a year-over-year basis, highlighting a considerable shift from the latter part of the previous year. The first quarter slump is an alarming indicator for the nation’s economic health, which had shown signs of recovery towards the end of 2023.

Economists are attributing this sudden reversal to a multitude of factors including weakened consumer spending, a sluggish export sector, and reduced investment activities. The latest figures have sparked concerns among policymakers and investors about the need for substantial economic interventions to steer Japan back towards growth.

The unfolding economic scenario underscores the challenges Japan faces in maintaining sustainable economic momentum, and how quickly changing global and domestic conditions can impact the overall economic landscape.