![Penalized by the fall of the yen, Japan’s GDP falls back into the red Penalized by the fall of the yen, Japan’s GDP falls back into the red](https://media.lesechos.com/api/v1/images/view/66459d341ef6ab05d64e4456/1280x720/01101108177846-web-tete.jpg)
Paralyzed by the rise in prices in their supermarkets and the stagnation of their salaries, the Japanese further reduced their spending in the first quarter of 2024. They fell by 0.7% quarter-on-quarter. In a country where this private consumption represents more than 55% of all economic activity, this decline automatically led to a contraction of 0.5% in gross domestic product over the first three months of the year. At an annualized rate, this cold snap would result in a 2% drop in GDP.
Since the start of the year, the country has not been able to count on its other growth engines to compensate for the anxiety of its households. Business investment spending is still falling, as managements find it difficult to believe in a solid recovery in demand. Private residential investment has also declined. And industrial activity has suffered since the start of the year from the setbacks of one of Toyota’s major subsidiaries.