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flag Japan's economy shrank less than first thought in Q1, but export issues cloud full recovery.

flag Japan's economy contracted by 0.2% in the first quarter of 2025, a better figure than the initial estimate of a 0.7% drop. flag The improvement is due to stronger consumer spending and private inventories. flag Despite the revision, exports and external demand weakened, impacted by global trade tensions and US tariffs, which may delay a full economic recovery. flag The Bank of Japan is likely to delay any interest rate hikes due to these economic challenges.

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