Revised government data reveals a 1.8% annual shrinkage in Japan’s economy for the first quarter, slightly better than the initial 2.0% estimate. Private sector investments saw a minor improvement at minus 0.4%. Despite this, the seasonally adjusted real GDP remained negative due to declines in exports and consumption. Slow wage growth and rising import prices, attributed to a weakening yen, pose challenges. The ongoing scandal involving improper vehicle model tests at major automakers further dampens economic prospects. Investors await the Bank of Japan’s next move amidst rising input costs and currency weakness.
Japanese Economy Shrinks 1.8% in Q1, Amidst Challenges and Scandals
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