Tokyo: Japan's economy grew at an annualized pace of 1.0 percent in the April-June quarter, the Cabinet Office said Friday, extending the growth streak to five consecutive quarters. The increase was primarily driven by strong business investment, although consumer spending remained sluggish.
According to Kuwait News Agency, on a quarter-on-quarter basis, inflation-adjusted gross domestic product (GDP) rose 0.3 percent from the January-March period. The GDP figure for the first quarter was revised to reflect 0.1 percent growth, an adjustment from an earlier estimate of a decline.
Private consumption, accounting for over half of Japan's economic output, increased by 0.2 percent from the previous quarter. This growth was attributed to strong sales of summer clothing and motor vehicles, though spending on beverages such as alcohol saw a decrease.
Corporate capital spending, another significant factor in the growth, climbed by 1.3 percent. Exports experienced a 2.0 percent increase from the previous quarter, bolstered by electronic components and devices, while imports rose by 0.6 percent, driven by purchases of crude oil and natural gas.
Economic Revitalization Minister Ryosei Akazawa stated that the results confirmed a moderate economic recovery. He emphasized the need to remain vigilant about potential risks, particularly the impact of US trade policies on economic activity. GDP measures the total value of goods and services produced domestically.