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Japan's economy shrinks in the first quarter, dragged by US tariff tensions

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Japan's economy contracted by 0.7% in the first quarter, impacted by weak domestic demand and declining exports, even before the full effect of US tariffs. Analysts warn that the situation could worsen, potentially leading to calls for increased fiscal spending. The Bank of Japan faces pressure to hold back on further interest rate hikes amid fears of a global slowdown.
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