Japan's Q1 2025 GDP Holds Flat at 0%, Beats Forecasts of -0.2%

Japan’s Q1 2025 GDP Beats Forecasts With 0% Growth

Japan’s economy held steady in the first quarter of 2025, with quarter-on-quarter GDP growth registering at 0%, according to the final reading released by Japan’s Cabinet Office on Monday. This marks an improvement over both the market expectation and preliminary reading, which had projected a -0.2% contraction.

Final GDP Figures:

• Quarter-over-Quarter (QoQ): 0.0% (vs. -0.2% expected)
• Year-over-Year (YoY): -0.2% (vs. -0.7% previous estimate)

Yearly Decline Eases

Although the economy shrank on a yearly basis, the YoY contraction narrowed to -0.2%, a notable revision from the earlier estimate of -0.7%. This suggests that Japan's economic fundamentals may be stronger than previously assessed.

What This Means for Investors and Policymakers

The flat quarterly performance offers a signal of stabilization despite global headwinds, supply chain disruptions, and inflationary pressure. The improved YoY figure may influence the Bank of Japan’s monetary stance and offer room for policy reassessment going into the second half of 2025.

Related Content on Tredu.com:

• BOJ's Inflation Strategy and Interest Rate Outlook
• How Japan's Export Trends Are Impacting GDP Growth
• Global Economic Trends in Q1 2025

Key Takeaways:

• Japan avoids contraction in Q1 2025 with 0% GDP growth.
• Beats market expectations of -0.2% QoQ decline.
• YoY GDP improved to -0.2% from -0.7%.
• Signals resilience in Asia’s third-largest economy.