Japan's GDP was flat in Q1 of 2025, outperforming the flash estimate of a 0.2% contraction but marking a sharp slowdown from the 0.6% growth in Q4. Net trade contributed positively (0.4 percentage points to GDP), a significant revision from the preliminary drag of 0.8 percentage points. This came as exports fell for the first time in a year (-0.5% vs 1.7% in Q4) while imports surged (3.0% vs -1.4%), representing the largest gain in five quarters amid a 90-day trade truce with U.S. President Trump. Private consumption, which accounts for over half of economic output, was revised slightly higher to show 0.1% growth for the second consecutive quarter, instead of a flat reading in the initial estimate. Business investment also picked up, rising 1.1% - its fastest pace since Q2 2024 - though still below the initial estimate of 1.4% and up from 0.6% in Q4. Meanwhile, government spending declined by 0.5%, contrary to the flash estimate of no change, pointin g to its first drop in five quarters.