Japan Q3 GDP Revised Down to Negative 2.3%
By Reuters | 07 Dec, 2025

The contraction represents a downward revision from an initial figure of 1.8%, and came despite a slight increase in consumer spending, suggesting industrial contraction.

Japan's economy contracted faster than initially reported in July-September from the previous three-month period, revised government data showed on Monday.

The revised figure for gross domestic product from the Cabinet Office showed the economy shrank an annualised 2.3%, the fastest contraction since the third quarter of 2023.

That compared with economists' median forecast for a 2.0% contraction and an initial reading of 1.8%.

On a quarter-on-quarter basis, GDP contracted 0.6%, compared with the median forecast of 0.5% and initial estimate of 0.4%.

Still, economists viewed the revised figures as having only a marginal impact on the Bank of Japan's next interest rate decision. The BOJ is likely to raise its policy rate at its December 18-19 meeting and the government is set to tolerate the decision, sources have told Reuters.

Private consumption, which accounts for more than half of the economy, inched up a revised 0.2% in July-September, versus 0.1% in the preliminary reading.

The capital expenditure component of GDP, a barometer of private demand, fell 0.2%, lowered from the initial estimate of a 1.0% rise. Economists had estimated a 0.4% uptick.

External demand, or exports minus imports, knocked 0.2 percentage points off growth, unchanged from the preliminary reading. Domestic demand shaved 0.4 percentage point, compared with a 0.2 percentage point drag in the initial figure.

(Reporting by Satoshi Sugiyama; Editing by Chang-Ran Kim and Christopher Cushing)