Japan’s economy grew more strongly than first estimated in Q2, extending its expansion streak to five consecutive quarters.
- Revised data showed real GDP rising at an annualised 2.2% pace, double the initial 1% estimate, with quarterly growth at 0.5%.
- Consumption and capital expenditure were both revised higher, though capex was softer than initially reported.
The stronger figures may ease concerns about the durability of the recovery, but political uncertainty, bond market volatility, and high U.S. tariffs remain significant headwinds. Economists caution that tariffs could squeeze corporate profits, threatening wage growth and domestic demand just as the Bank of Japan weighs further rate hikes.
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