Japan's Economy Shrinks for the First Time: Impact of Customs Duties

The Japanese economy shrank by 1.8 percent based on annualized data for the period of July-September 2023. This situation marks a significant turning point in the country's economic performance. The figures released by the government indicate that the customs tariffs implemented by former U.S. President Donald Trump have severely affected Japan's exports and reduced its growth performance.

According to data published by the Cabinet Office, Japan's gross domestic product (GDP) decreased by 0.4 percent compared to the previous quarter. This result shows that the growth streak the economy has maintained for the last six quarters has come to an end. The figures, which are below the 0.6 percent decline forecast made by market analysts, indicate that the existing risks continue to persist.

The sharp decline in exports raises concerns about the weak points of the Japanese economy. The pressure on the country's exports due to customs tariffs stands out as a significant factor threatening economic growth. Experts are considering various scenarios regarding how this decline will affect the overall trajectory of the economy in the upcoming period.

It is crucial to remember that foreign trade holds great importance in an export-oriented economy like Japan's. The increase in costs for exported products due to customs tariffs may weaken Japan's competitiveness. This situation requires in-depth analyses in terms of both internal economic dynamics and global trade balances.

In conclusion, it is evident that Japan is facing chronic growth issues, and the pressure created by external factors is further complicating this situation. Continued fluctuations in economic indicators are expected, which will increase uncertainties regarding Japan's economic future.