Japan’s Shrinking Economy Leaves Ishiba, BOJ With Recession Risk

Japan’s economy was shrinking even before the bulk of US President Donald Trump’s tariff measures took force, leaving the economy at risk of sliding into recession as Prime Minister Shigeru Ishiba heads into an election and the central bank weighs policy.

The economy flipped back into reverse in the first three months of the year, contracting by 0.7% on an annualized basis adjusted for inflation, according to a report by the Cabinet Office released Friday.

Shigeru Ishiba

Photographer: Nicolas Datiche/Sipa/Bloomberg

The decline in gross domestic product was larger than a 0.3% contraction forecast by economists. Weaker trade figures were the main factor driving ...