Japan Q3 GDP revised to deeper contraction on weak capital spending

Japan's economy contracted by 1.8% in the third quarter of 2025, exacerbated by weak capital expenditure, which raises concerns about the country's economic stability. This contraction is seen as unlikely to influence the Bank of Japan's (BOJ) stance on interest rate hikes.

The yield on Japan's 10-year government bonds declined following disappointing gross domestic product (GDP) data, which indicated a contraction in the economy. This decline reflects investor concerns about economic stability as Japan's GDP contracted by 1.8% in the third quarter of 2025, exacerbated by weak capital expenditure.

Japan's economy contracted by 2.3% on an annualized basis in the third quarter, a deeper decline than the previously estimated 1.8%. This revision highlights ongoing economic challenges, particularly in capital expenditure, which has raised concerns about the country's economic stability.

Japan continues to struggle with the underrepresentation of women in leadership roles, highlighting a significant gap in gender equality within the business sector. Despite various initiatives aimed at increasing female participation in corporate leadership, progress remains slow and insufficient to meet targets set by the government.

Japan's real wages fell for the tenth consecutive month in October, despite an increase in nominal pay, indicating a troubling trend for workers as inflation continues to outpace wage growth.