Japan's GDP contracts 1.8 pct in Q3

Japan's economy contracted an annualized real 1.8 percent in the third quarter of 2025, marking the first contraction in six quarters, according to preliminary government data released on Monday.

Quarter-on-quarter, real gross domestic product (GDP), adjusted for inflation, in the July-September period declined 0.4 percent from the previous three months, according to the Cabinet Office.

The shrinkage in GDP was widely expected, as the Japanese economy grappled with sticky inflation, sluggish private spending and higher U.S. tariffs.

Exports decreased 1.2 percent from the April-June period while imports were down 0.1 percent. As a result, external demand, or exports minus imports, subtracted 0.2 percentage points from the GDP, accounting for half the decline.

Among other key components, private consumption, which accounts for more than half of economic output, inched up 0.1 percent while corporate investment increased 1.0 percent.

Japan's auto industry, which accounts for nearly 10 percent of GDP and 8.3 percent of jobs, has taken a heavy hit from the U.S. tariffs. In the first half of fiscal 2025, the seven major Japanese car-makers lost about 1.5 trillion yen (about 10 billion U.S. dollars). This is the first time since COVID-19 pandemic that all seven reported profit declines, with several falling into the red.

At the same time, Japan’s growth outlook is weakening. The government has cut its 2025 GDP forecast from 1.2 percent to 0.7 percent, and the OECD has made the same downgrade.

Japan's GDP contracts 1.8 pct in Q3

Japan's GDP contracts 1.8 pct in Q3

Japan's GDP contracts 1.8 pct in Q3

Japan's GDP contracts 1.8 pct in Q3

Director of the 2025 China Media Group (CMG) Spring Festival Gala Yu Lei took part in the torch relay for the 2026 Milan-Cortina Winter Olympics in Rome on Saturday.

The relay began at the Stadio dei Marmi on Saturday morning, marking the start of a two-month journey ahead of next year's opening ceremony.

"In 2022, I was very fortunate to be part of the core creative team for the opening and closing ceremonies of the Beijing Winter Olympics. The experience, especially witnessing the Milan-Cortina eight-minute presentation at the closing ceremony, is still vivid in my memory. It was broadcast worldwide through CMG. Being here in Rome today for the torch relay, I hope the Olympic spirit and the brilliance of the Winter Olympics will continue from Beijing to Milan," Yu said.

The opening leg of the torch relay began at Rome's Stadio dei Marmi and stretched about 30 kilometers, passing several historic landmarks.

Locals lined the streets to witness the event, proudly celebrating Rome's role in carrying forward the Olympic flame.

"I like it (the torch relay). Rome is an international metropolis that can host all these types of events," said Antonio, an Italian spectator.

The torch will traverse 12,000 kilometers over 60 days across Italy, passing through more than 300 municipalities, featuring celebrations in 60 cities, reaching all 110 Italian provinces, and lighting up UNESCO sites along the route.

More than 10,000 torchbearers from all walks of life will take part in the journey, including figures from the worlds of sports, culture, film, and civil society.

The relay will conclude on February 6 at Milan's San Siro Stadium.

CMG Spring Festival Gala director takes part in Winter Olympics torch relay in Rome