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of <h1>Economic Slowdown Hits Japan: Trade Tensions and Export Decline Trigger 0.7% Quarterly Contraction in GDP</h1> A Japanese government report reveals the economy contracted 0.7% annually in the first quarter of 2025, primarily due to trade tensions and reduced exports. The decline stems from US trade policies impacting global economic dynamics. Exports dropped 2.3%, while consumer spending remained stagnant. Underlying challenges include an aging population, weak domestic demand, and potential economic uncertainties. The central bank may reconsider future interest rate adjustments in response to these economic indicators.
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