Japan Q3 GDP Slides As Takaichi Advances Stimulus

Benzinga

Japan’s economy shrank at a 2.3% annualized pace in Q3 as business investment and housing weakened, bolstering support for a ¥17.7T stimulus plan ahead of a likely BOJ rate hike. Exports stayed soft under U.S. tariffs and real wages continued their long decline.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:03Japan's economy contracted at a 2.3% annualized pace in the third quarter,

00:07as revised data showed weaker business spending and housing investment, according to Bloomberg.

00:12The downturn was deeper than the initial 1.8% estimate and marked the first contraction in

00:18six quarters. The figures support Prime Minister Sanae Takeuchi's 17.7 trillion yen stimulus

00:24package, which includes tax cuts, utility subsidies, and wage support for smaller firms.

00:30The government expects the package to lift GDP by about 1.4 percentage points per year for three

00:35years. The data arrive ahead of the Bank of Japan's meeting next week, where overnight index swaps show

00:41about a 90% chance of a rate hike following Governor Kazuo Weida's recent signals. Business investment

00:47fell 0.2% from the prior quarter, exports remained weak amid Trump's tariffs, and real wages dropped

00:53for a 10th straight month. For all things money, visit Benzinga.com.

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