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flag Japan's economy shrank 0.6% in Q3 2025 due to weak demand and exports, despite a current account surplus.

flag Japan’s economy contracted 0.6% in Q3 2025, reversing prior growth due to weaker domestic demand, slowing exports, and subdued private consumption and investment. flag The Bank of Japan kept monetary policy cautious, delaying interest rate cuts. flag November bank lending rose 4.2% year-on-year, indicating continued but moderate credit growth, while October’s current account surplus reached ¥2.834 trillion, supported by strong exports and capital inflows. flag Final GDP data, to be released in December, will provide a fuller picture.

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