economy
Japan's second-quarter GDP grows 1.1% on an annualized basis, missing expectations
On an annualized basis, Japan saw growth of 1.1%, against estimates of 2%.
TL;DR
- Japan's GDP grew 1.1% on an annualized basis in Q2, missing expectations of 2%.
- Exports were the main growth driver, benefiting from a weak yen.
- Domestic demand weakened, primarily due to the release of national oil reserves and declining consumer sentiment.
- Consumption of non-durable goods and services, as well as business investment, also contracted.
- The Bank of Japan projects moderate growth for the fiscal year, acknowledging challenges from high oil prices but potential offsets from government policies and AI demand.
- Inflation is expected to rise in H2 as firms pass on costs, potentially worsening consumer purchasing power.