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The
Cabinet Office said Japan’s real gross domestic product, the sum
value of a nation’s goods and services, grew at a seasonally
adjusted 2.2% annualized rate in the April-June quarter from the
previous quarter.
That was better than the preliminary estimate for 1.0% growth,
which came out last month, as solid consumer spending and
inventories lifted growth more than previously thought.
Quarter-on-quarter, Japan’s GDP grew 0.5%, up from the initial
estimate for a 0.3% rise, which was also what analysts
projected, according to RaboResearch.
That marked the fifth straight quarter of growth. The annualized
number shows what the growth, or contraction, would have been if
the quarterly rate continued for a year.
U.S. President Donald Trump’s move to raise tariffs on Japanese
imports is a major worry for the export-dependent economy,
especially auto exports, which now face a 15% tariff, up from
2.5%.
Another concern is the looming political uncertainty after Prime
Minister Shigeru Ishiba announced Sunday he is stepping down as
head of the ruling party. A party election will follow over the
next weeks.
Private consumption rose 0.4%, according to the latest
government data, better than the initial estimate for 0.2%
growth, raising domestic demand growth into positive territory
at 0.2% growth, instead of contracting 0.1%, as in the earlier
data.
Japan’s benchmark Nikkei rose in morning trading, despite
Ishiba’s announcement on resigning, as the move was somewhat
expected, and the market appeared to welcome the action as a
step forward.
But analysts say uncertainty remains because it’s still unclear
what parties might be brought in to form a coalition with the
ruling party.
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