May 23rd, 2025
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Japan's economy got a little smaller from January to March. This happened because selling goods to other countries was harder, and people were not sure about spending money.
Japan's economy got a little smaller from January to March. It went down by 0.2%. This is the first time it has gone down in a year.
Selling things to other countries went down a little bit, about 2%. People spent the same amount of money as before, but companies invested a bit more, about 6%.
Trump's taxes may be bad for big companies in Japan that sell things to other countries, like car companies. This is true for things from Japan, but also from places like Mexico and Canada. People in charge know it is hard to plan because Trump changes what he thinks.
S&P Global said that car companies in some areas may have to pay more and may not get as much money. This is because they make cars in different places and get parts from many suppliers.
It said that even small companies that sell a little in the U.S. may have problems because of tariffs, as these can change the world economy and what people want to buy.
Japan's economy is not doing well. Fewer people are buying things because there are fewer young people. Many people are not getting married or having children.
The Bank of Japan had very low interest rates. Now, they are slowly making them a little higher. They see that people are getting paid okay and things cost a bit more.
The news says the economy is not strong. So, the bank may not raise rates now.
Some people think we should lower the 10% tax on things we buy. This could help people who are having a hard time.
But the Prime Minister has not said yes to this idea yet. Japan has money problems because it needs to pay for things like helping older people.
The economy got a bit bigger last year. It grew by 2.4%.
May 23rd, 2025
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