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Asian Interim Low China And Japan Report A Slowing Economy

From Peter Königsreuther | Translated by AI 2 min Reading Time

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In China, experts claim to see the first signs of an economic slowdown. And the Japanese economy continues to shrink, albeit not as sharply as expected ...

Currently, the economic trends in China and Japan are pointing downward. Analysts are evaluating the developments with an eye on the future of these economies ...(Image: Curveator)
Currently, the economic trends in China and Japan are pointing downward. Analysts are evaluating the developments with an eye on the future of these economies ...
(Image: Curveator)

In October, China's industrial production reportedly lost momentum unexpectedly and significantly. The increase in retail sales is said to have weakened for five consecutive months. As the national statistics office in Beijing announced on Friday, production in industrial enterprises rose by 4.9 percent year-on-year. In the previous month, manufacturing had grown by 6.5 percent. Analysts had expected average growth of 5.5 percent for October. The development in retail, the world's second-largest economy, was also disappointing. The office simultaneously reported a year-on-year increase in sales of 2.9 percent. This key figure, crucial for private consumption, reached its lowest level since August 2024. A decline in sales lasting five months last occurred in 2021, when China's economy was burdened by the Corona crisis, experts noted. All in all, China is losing strength, although the country has proven relatively resilient in the face of the trade dispute with the U.S. and the resulting decline in exports. As some analysts believe, however, this is not a crash but merely a temporary downturn.

Japan's New Government Could Put Together A Growth Package

And Japan's economy shrank over the summer, partly due to weak exports and investments. From July to September, Japan's gross domestic product (GDP) fell by 1.8 percent on an annualized basis compared to the previous quarter, according to the Japanese government. It was the first decline since early 2024. However, experts surveyed by Bloomberg had expected an even slightly sharper downturn. In the first two quarters of 2025, however, Japan's economy had grown strongly. Yoshimasa Maruyama, chief economist at the securities firm SMBC Nikko Securities, therefore sees Japan still on a moderate growth path. Nevertheless, the third-quarter growth data are likely to reinforce the newly established government's conviction that the economy should be supported with a comprehensive growth package. Since mid-October, Japan has been led by Prime Minister Sanae Takaichi—the first woman at the helm of Nippon. Growth-promoting measures are expected from her.

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