Japan’s Economy Shrinks, But Factories Stay Strong!

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Japan’s economy just took a hit.

In the first quarter of 2025, GDP shrank by 0.2%—the first contraction in a year, and worse than expected.

On an annualized basis, it dropped 0.7%, a sharp reversal from last quarter’s 2.4% growth.

But there’s a twist—Japan’s industrial production actually rose 0.2% in March, defying forecasts of a decline.

Year-over-year, output is up 1.0%, marking three straight months of gains.

Meanwhile, all eyes are on US-Japan trade talks, with Tokyo pushing to finalize a deal by June.

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