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Why did Japan’s GDP fall in Q3?
Japan’s GDP shrank by 0.6% in the third quarter due to a decline in exports and a significant drop in private residential investment, which fell by 8.2%. External factors like U.S. tariffs on autos and imports have also strained Japan’s economy, impacting its export-driven growth.
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How are U.S. tariffs affecting Japan?
U.S. tariffs on autos and imports have increased costs for Japanese exporters, especially in the auto industry. These tariffs have led to a decline in exports and created tension in Japan-U.S. trade relations, which can slow down economic growth and investment.
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What is Japan doing to boost its economy?
Japan is exploring various measures to stimulate growth, including government investments, reforms, and policies aimed at increasing domestic consumption. The new prime minister, Sanae Takaichi, is also focusing on nationalist policies to revive the economy amid external pressures.
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Will the new prime minister change things?
Prime Minister Sanae Takaichi’s leadership is seen as a potential turning point. Her nationalist stance and focus on economic revival could lead to new policies aimed at boosting growth, but the impact will depend on how effectively these measures are implemented.
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Is Japan’s economic decline temporary or long-term?
While some of Japan’s recent economic challenges are linked to external factors like tariffs and global trade tensions, ongoing structural issues and demographic changes also pose long-term risks. The government’s response and global economic conditions will influence whether the decline is temporary or persists.