The Japanese economy grew by 3.5 percent in real terms on an annual basis in April-June this year.
In the year’s second quarter, Japan’s economy grew more than initially anticipated in the three months to June before downside risks to the global economy began to emerge and rebounded from ground lost during the pandemic.
According to data released by the Cabinet Office, the gross domestic product grew by 3.5 percent year-on-year in the second quarter compared to the previous quarter. Bloomberg economists had expected growth of 2.9 percent.
Thursday’s figures confirm that Japan’s economy has regained its pre-pandemic size and is more firmly grounded than seen in the first reading. Business spending rose 2% after the finance ministry reported a more substantial increase last week. Japan’s recovery pace accelerated as the virus emerged from the winter wave and led to a surge in consumer spending.
Analysts expect the pace of recovery to continue in the current quarter as a record wave of viruses in the summer and rising costs of living threaten to cool consumption.
