Japan’s GDP Grows 2.9% in Q2

Japan's economy grew an annualized real 2.9 percent in the April-June quarter, revised down from an initially reported 3.1 percent, as private consumption and capital spending were not as high as previously thought, the Cabinet Office said today. Despite the downward revision, the figure marked the first growth in two quarters as the negative impact of a safety data-rigging scandal in the auto sector eased, helping to boost personal consumption. Real gross domestic product, adjusted for inflation, grew 0.7 percent from the previous quarter, compared with the preliminary reading of 0.8 percent. Capital investment was revised down to a growth of 0.8 percent in the April-June period. Private consumption, which accounts for more than half of GDP, increased 0.9 percent, marking the first rise in five quarters, but the figure was smaller than the earlier reported 1.0 percent. The GDP figures were in line with the government's view that the world's fourth-largest economy is recovering at a moderate pace, backin g the case for the Bank of Japan to raise its policy rate further, following its second hike this year (2024) in July. On the other hand, exports climbed 1.5 percent, helped by auto shipments, while public investment increased 4.1 percent. On a nominal basis, Japan's GDP totaled 607.58 trillion yen ($4.3 trillion), surpassing 600 trillion yen, a target set by the government in 2015. Source: Oman News Agency