Japan's Economy Expands Faster Than Initially Estimated in Q2
Summary
Japan’s economy grew 0.4 percent in the April-to-June quarter, faster than the initially estimated 0.3 percent, as revised data showed slightly stronger consumption and investment. Expectations of a Bank of Japan rate hike and support for the yen have risen as inflation pressures and cabinet reshuffle speculation continue.
Key Points
- Revised government data shows Japan’s economy expanded 0.4 percent in the second quarter, above the initial estimate of 0.3 percent.
- Private consumption and corporate investment were slightly better than first reported, while lower imports lifted GDP growth.
- Markets expect Japan’s central bank to raise its main interest rate next week amid rising inflation and a weaker yen.
- The yen strengthened after comments from US Treasury Secretary Scott Bessent and Bank of Japan Governor Kazuo Ueda, while Prime Minister Sane Takaichi is preparing a cabinet reshuffle.
