Story perspectives

Japan's Economy Shrinks 2.3%, BoJ Eyes Rate Hike

12/8/2025

Summary

Story summary

Japan's economy contracted at an annualized rate of 2.3% in the July–September quarter, worse than the initial 1.8% estimate.
The decline was driven by reduced capital spending and weaker real wages, raising concerns about demand.
Private consumption rose by 0.2%.
Capital expenditure fell by 0.2%.
The Bank of Japan (BoJ) is expected to raise interest rates at its upcoming meeting, with policymakers considering fiscal stimulus measures to boost the economy.

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Story summary

Japan's economy contracted at an annualized rate of 2.3% in the July–September quarter, worse than the initial 1.8% estimate.
The decline was driven by reduced capital spending and weaker real wages, raising concerns about demand.
Private consumption rose by 0.2%.
Capital expenditure fell by 0.2%.
The Bank of Japan (BoJ) is expected to raise interest rates at its upcoming meeting, with policymakers considering fiscal stimulus measures to boost the economy.