Japan’s economy shrank 2.3% annualized in Q3 2025, steeper than the initial estimate of a 1.8% drop and market estimates of a 0.5% decline. It marked the first yearly contraction in six quarters and the fastest pace in two years, reversing a downwardly revised 2.1% expansion in Q2, with capital expenditure falling for the first time in three quarters as higher borrowing costs discouraged investment. Net exports also weighed on growth, as exports declined significantly faster than imports after the U.S. imposed a 15% baseline tariff on most Japanese goods, despite a trade deal reached in September. Meanwhile, private consumption posted the smallest gain in three quarters as rising living costs, particularly higher rice prices, continued to strain households. Meanwhile, government spending slowed notably, offering limited support to overall activity. source: Cabinet Office, Japan

GDP Growth Annualized in Japan decreased to -2.30 percent in the third quarter of 2025 from 2.10 percent in the second quarter of 2025. GDP Growth Annualized in Japan averaged 1.79 percent from 1980 until 2025, reaching an all time high of 23.20 percent in the third quarter of 2020 and a record low of -27.10 percent in the second quarter of 2020. This page provides the latest reported value for - Japan GDP Growth Annualized - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Japan GDP Growth Annualized - data, historical chart, forecasts and calendar of releases - was last updated on February of 2026.

GDP Growth Annualized in Japan decreased to -2.30 percent in the third quarter of 2025 from 2.10 percent in the second quarter of 2025. GDP Growth Annualized in Japan is expected to be 2.30 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Japan GDP Growth Annualized is projected to trend around 2.00 percent in 2026 and 2.10 percent in 2027, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2025-11-16 11:50 PM
GDP Growth Annualized Prel
Q3 -1.8% 2.3% -2.5% -2.0%
2025-12-07 11:50 PM
GDP Growth Annualized Final
Q3 -2.3% 2.1% -2% -1.8%
2026-02-15 11:50 PM
GDP Growth Annualized Prel
Q4 -2.3%


Related Last Previous Unit Reference
GDP Annual Growth Rate 1.10 2.00 percent Sep 2025
GDP Constant Prices 561765.30 564261.90 JPY Billion Sep 2025
GDP from Agriculture 5899.90 5846.30 JPY Billion Dec 2024
GDP from Construction 31263.60 33235.90 JPY Billion Dec 2024
GDP from Manufacturing 110990.40 117803.70 JPY Billion Dec 2024
GDP from Mining 210.10 213.60 JPY Billion Dec 2024
GDP from Public Administration 28319.80 27748.90 JPY Billion Dec 2024
GDP from Services 24487.50 25345.00 JPY Billion Dec 2024
GDP from Transport 32462.70 31309.90 JPY Billion Dec 2024
GDP from Utilities 18737.60 17352.40 JPY Billion Dec 2024
GDP Growth Annualized -2.30 2.10 percent Sep 2025
GDP Growth Rate -0.60 0.50 percent Sep 2025
GDP Capital Expenditure 154609.20 157082.10 JPY Billion Sep 2025
Gross National Product 596734.80 593836.00 JPY Billion Sep 2025


Japan GDP Growth Annualized
GDP Annualized Growth Rate shows the gdp growth that would be registered if the quarter-on-quarter rate of change were maintained for a full year.
Actual Previous Highest Lowest Dates Unit Frequency
-2.30 2.10 23.20 -27.10 1980 - 2025 percent Quarterly
SA, Constant Prices

News Stream
Japan Economy Contracts at Annualized 2.3% in Q3
Japan’s economy shrank 2.3% annualized in Q3 2025, steeper than the initial estimate of a 1.8% drop and market estimates of a 0.5% decline. It marked the first yearly contraction in six quarters and the fastest pace in two years, reversing a downwardly revised 2.1% expansion in Q2, with capital expenditure falling for the first time in three quarters as higher borrowing costs discouraged investment. Net exports also weighed on growth, as exports declined significantly faster than imports after the U.S. imposed a 15% baseline tariff on most Japanese goods, despite a trade deal reached in September. Meanwhile, private consumption posted the smallest gain in three quarters as rising living costs, particularly higher rice prices, continued to strain households. Meanwhile, government spending slowed notably, offering limited support to overall activity.
2025-12-08
Japan Economy Contracts at Annualized 1.8% in Q3
Japan’s economy shrank 1.8% on an annualized basis in Q3 2025, a smaller decline than the 2.5% drop expected and a reversal from the slightly revised 2.3% growth in Q2, flash data showed. It was the first annualized decline in six quarters, driven by the weakest private consumption in three quarters as rising food prices, especially rice, continued to strain households. Net exports also weighed on growth, with exports falling faster than imports following the U.S. decision to impose a 15% baseline tariff on most Japanese goods despite a trade deal reached in September. Still, both government spending and capital expenditure logged their strongest increases in five quarters, supported by front-loaded public investment and business upgrades. The latest figure comes as new Prime Minister Sanae Takaichi seeks to shore up the economy, with her administration preparing measures to ease living-cost pressures and help exporters navigate tariff-related headwinds.
2025-11-17
Japan Q2 GDP Grows 2.2% Annualized, Outlook Dims After Ishiba Leaves Office
Japan’s economy grew by 2.2% on an annualized basis in Q2 2025, exceeding the initial estimate of 1.0% and sharply accelerating from a downwardly revised 0.3% increase in Q1. It was the fifth straight quarter of annual growth and the fastest pace since Q3 2024, boosted by solid private consumption as government measures helped cushion cost pressures from rising food—particularly rice—and energy prices. Capital spending also rose for the third quarter, supported by expectations of monetary tightening, stronger investment in labor-saving technologies, digitalization, and supply chain diversification. Net trade contributed positively, lifted by a sharp rebound in exports as firms front-loaded shipments to the U.S. ahead of the newly imposed 15% blanket tariffs. Economists warn that tariff headwinds could intensify in the coming quarters, while growing political uncertainty after Prime Minister Shigeru Ishiba’s resignation may complicate policymaking.
2025-09-08