On December 8, the Cabinet Office of Japan released a revised statistical report showing that the country’s real GDP in the third quarter of 2025 shrank by 0.6% month-on-month after revision, with the annualized decline expanding to 2.3%. This data significantly exceeded the average market forecast of a 2.0% decline, reflecting that Japan’s economic recovery has encountered obstacles. The expanded GDP decline is mainly dragged down by multiple factors such as weak domestic demand, slowing export growth, and sluggish recovery in industrial production.

In terms of economic structure, Japan’s consumer market remains sluggish, with household consumption expenditure growing weakly. Coupled with the impact of global supply chain adjustments, the growth of key export industries such as automobiles and electronics has slowed down. At the same time, the yen exchange rate has fluctuated greatly recently. Data from the New York foreign exchange market on December 8 showed that 1 US dollar could be exchanged for 155.91 yen, appreciating compared with the previous trading day. Although this is beneficial to imports, it further squeezes the profit margins of export enterprises.

Facing downward economic pressure, the Japanese government is currently planning a number of response measures. It is reported that Japan will increase investment in new energy and high-end manufacturing, attempting to drive economic growth through industrial upgrading. However, analysts point out that structural problems facing Japan’s economy, such as aging population with a low birth rate and high dependence on foreign energy, cannot be solved in the short term. This GDP data may prompt the Bank of Japan to adjust its monetary policy, and the market has begun to speculate whether it will further ease liquidity to stimulate the economy.