Japan's GDP Grows for Third Straight Quarter but Consumer Spending Stalls

Feb 18, 2025 | News On Japan

TOKYO - Japan's real gross domestic product (GDP) grew at an annualized rate of 2.8% from October to December last year, marking the third consecutive quarter of positive growth. However, the results are not entirely encouraging, as weak consumer spending remains a concern.

The economy benefited from a weak yen, which boosted inbound tourism and increased exports, while strong corporate earnings supported a rise in capital investment. Yet, despite the overall expansion, personal consumption—accounting for roughly 60% of GDP—edged up only 0.1%, with its growth rate slowing compared to the previous quarter.

While winter bonuses remained at a high level, rising food prices, including historically expensive rice, prompted consumers to cut back on spending. Wage increases have struggled to keep pace with inflation, and data released today showed that personal consumption for the entire year of 2023 declined by 0.1%, marking the first annual decrease since 2020.

Looking ahead, Japan faces further economic uncertainty. More than 7,000 products are set to see price hikes by April, and concerns over potential tariff policies under former U.S. President Donald Trump are adding to the unpredictability. As a result, any economic recovery is expected to take more time.

Source: TBS

Heavy Rain Triggers Flood Warnings in Tokyo

Heavy rain continued across wide areas of Japan on September 9 after downpours began the previous day, prompting Level 4 flood danger warnings along several rivers in Tokyo and, at one point, a Level 5 emergency safety alert in Nagoya, while forecasters warned that another round of intense rain could hit the Kanto region during the afternoon and evening.

Nagoya Streets Flood as Linear Rainbands Hit Aichi and Gifu

Torrential rain caused widespread flooding across central Japan on September 8, inundating roads in central Nagoya and other cities as linear rainbands formed over Aichi and Gifu prefectures and authorities warned that similar conditions could develop in the Kanto region through September 9.

Tickets for Asian Games Selling Fast

Ticket sales for the Asian Games are gathering pace with less than two weeks until the competition begins, with more than 60% of tickets sold for the opening ceremony and 31 sports as of September 7, although organizers say seats remain readily available for events including soccer and baseball.

Gasoline Can and Knives Found After Deadly Gifu Cake Shop Blaze

Police investigating a fire that killed three people at a cake shop in Motosu, Gifu Prefecture, have found a gasoline container and multiple knives in the burned-out building and are examining whether a 70-year-old company executive who died after the incident brought the fuel to the scene.

Japanese Teens Spend Least Time on Social Media Among 24 Countries

Japanese 15-year-olds spend an average of 2.3 hours browsing social media during their weekday free time, the shortest amount among 24 countries surveyed, according to data from the Organization for Economic Cooperation and Development.

MEDIA CHANNELS

MORE Business NEWS

Samsung Opens Semiconductor Research Center in Yokohama

South Korean semiconductor giant Samsung Electronics has begun full-scale operations at a new semiconductor research center in Yokohama, seeking to accelerate development and strengthen cooperation with Japanese suppliers as demand for chips used in artificial intelligence continues to grow.

Nikkei Drops 1,130 Points as Yen Surge Hits Exporters

Tokyo stocks fell sharply on September 8, with the Nikkei 225 closing at 65,269, down 1,130.51 points, or 1.70%, as a sudden surge in the yen hit exporters and forced investors to reassess the impact of faster Bank of Japan tightening on corporate earnings, equity valuations and the broader economy.

Yen Climbs to Six-Month High Near 152 Against Dollar

The yen strengthened to around 152 against the dollar on September 8, reaching its strongest level in about six months after gaining nearly 7 yen in roughly a week as investors focused on prospects for a narrowing interest-rate gap between Japan and the United States.

Japan's Real Wages Rise 2.4% in July for Seventh Straight Gain

Japan's inflation-adjusted real wages rose 2.4% in July from a year earlier, marking a seventh consecutive monthly increase as higher base salaries and easing price pressures improved workers' purchasing power.

Headwinds for Rakuten Mobile as KDDI Ends Roaming

Rakuten Mobile faces a new test of its network quality after KDDI decided to scale back roaming support from September 2026, ending access to its network in areas where Rakuten already has its own base stations while continuing service in mountainous and sparsely populated regions.

Homebuyers Grow Anxious as Japan's Mortgage Rates Rise

Japanese homebuyers are facing growing uncertainty as mortgage costs rise alongside a sharp increase in interest rates, with the yield on the benchmark 10-year government bond briefly topping 3% last week for the first time in about 30 years.

Nikkei Jumps 1,378 Points as Chip Shares Lead Rebound

Tokyo stocks rose sharply on September 7, with the Nikkei 225 closing at 66,399, up 1,378 points, or 2.12%, as buying in artificial intelligence and semiconductor-related shares lifted the headline index, even though more stocks fell than rose across the Prime Market.

Japan's Foreign Reserves Post Record Decline in August

Japan's foreign exchange reserves fell by a record amount in August, reflecting the impact of currency market intervention by the government and the Bank of Japan at the end of July, the Finance Ministry said on September 7.

< 2 3 4 5 >