May 23rd, 2025
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Japan's economy got smaller by 0.7% in the first three months of the year. This happened because selling goods to other countries was harder, and people were not sure about spending money. This information is from the government.
Japan's economy got smaller by 0.2% from January to March. This is not good news and is the first time it has happened in a year, said the government.
Sales to other countries went down a little, by 2.3%. People spent the same amount of money as before, but businesses invested more, by 5.8%.
Trump's taxes may be bad for big companies in Japan that sell things to other countries, like car companies. This is because of products from Japan, but also from other countries like Mexico and Canada. People in charge know that it is hard to plan because Trump changes his mind a lot.
S&P Global said that car companies in some areas may have to pay more and may not earn as much money. This is because they make cars in different places and get parts from many suppliers, and they sell a lot of cars in the U.S.
The report said that even small companies that sell a little in the U.S. may be affected because tariffs can change the world economy and what people want to buy.
Japan's economy has had problems for a long time because not many people want to buy things, and there are fewer young people.
The Bank of Japan had very low interest rates for a long time. Now, they are slowly making them a bit higher. They see that people are still getting paid, and prices are going up little by little.
The news says the economy is not strong. So, the bank may not raise interest rates now.
Some people think the 10% tax should be less. This may help people who have problems.
But Shigeru Ishiba, the Prime Minister, has not said yes yet. Japan has money problems because taking care of people costs a lot.
The economy got bigger by 2.4% last year.
May 23rd, 2025
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