Japan lowered its economic growth estimate for the last quarter from 2.8% to 2.2%. The Cabinet Office shared this update on March 11, 2025. Japan’s real gross domestic product (GDP) grew for a third quarter. Private demand fell by 0.3%, exceeding the earlier estimate of 0.1%. Export growth also dropped from 1.1% to 1.0%. Consumer spending weakened, and private inventories increased. The Bank of Japan is considering increasing the interest rate. The government reported an annual growth rate of only 0.1%. Deflation has been a challenge, but rising wages have helped stabilize prices. The new GDP data raises concerns about Japan’s economic future. Global trade policies and political issues in the United States affect progress. Trade Minister Yoji Muto attended talks in Washington to discuss tariff increases on steel and aluminum. The Japanese government warned that trade limits could harm investments, jobs, and supply chains. Experts stated that stable growth requires flexible policies, strong local demand, and diplomatic efforts. The report highlights the need to balance financial strategies with global changes.