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December 08, 2025JAPAN GDP Q3 2025 (SECOND PRELIMINARY) 
Revised estimates indicate that the Japanese economy (real GDP) contracted at a seasonally adjusted annualized rate of 2.3% in the third quarter of 2025, steeper than the 1.8% decline from the first estimate. This was the first quarter of decline since Japan's economy recovered from recession in mid-2024.
Real GDP contraction in the third quarter came from a sharp decline in residential investment (-29.0%, seasonally adjusted annualized rate) along with a 0.8% decline in non-residential investment, a 4.2% decline in public investment and a 4.9% decline in exports. Household consumption growth slowed to 0.7% while government consumption spending was up 0.6%. Falling imports (-1.8%) offset some of the decline in exports.
Japan's nominal GDP contracted 0.2% (seasonally adjusted annualized rate) in Q3 2025, revised from 0.5% growth in the first preliminary estimate. The price deflator for Japan's real GDP (the broad measure of price growth) increased at a seasonally adjusted annualized rate of 2.2% in Q3 2025.
Source: Cabinet Office of Japan, Quarterly Estimates of GDP