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A Japanese flag flies at the Bank of Japan’s headquarters in Tokyo on July 29. Japan’s economy grew at an annual rate of 2. 2% in the April-June quarter compared to the previous quarter, the government said on Aug. 15, as customer spending recovered with the lifting of COVID-19 restrictions.
TOKYO >> Japan’s economy grew at an annual rate of 2. 2% in the April-June quarter compared with the previous quarter, the government said on Monday, as customer spending rebounded as coronavirus restrictions were lifted. the COVID-19.
Japan’s gross domestic product, or GDP, the sum of the price of a country’s goods and services, grew by 0. 5 percent from January to March, a period in which the economy remained stable, according to initial estimates by the Cabinet Office.
Economists had expected an expansion of 0. 6% in the quarter.
The annual figures show how the economy would have grown if the quarterly rate held for a year.
Private entry jumped at an annual rate of 4. 6%. Public investment grew at an annual rate of 3. 8%. Exports increased by 3. 7%, while imports increased by 2. 7%, both annual rates.
One of the main dangers for the world’s third-largest economy is the emerging costs, in the energy sector, caused by global inflation. Russia’s war in Ukraine has pushed energy costs even higher, a major disadvantage for Japan’s resource-poor.
The Japanese yen has weakened to a two-decade low against the dollar, recently trading at about 135 yen to the dollar, making imports more expensive. After the release of gdp data, the dollar was trading at about 133 yen.
On the plus side, the yen’s weakness works as a credit to Japanese export giants like Toyota Motor Corp. increasing the price of the source of income when translated into yen.
The coronavirus pandemic is a factor. The last Japanese government-subsidized restrictions on controlling infections ended in March.
COVID-19 cases have risen dramatically in recent months to record levels in some regions, a jump attributed to increased availability of tests, more communicable variants, and an undervaccinated segment of the population despite vaccine availability.
Some analysts say Japan’s economic expansion will slow down during the July-September period.
“After a much brighter spring, the economy will slow this quarter due to declining customer spending due to the accumulation of COVID-19 infections,” said Takayuki Toji, an economist at SuMi TRUST.
“Exports are expected to be supported by the lifting of the urban blockade in China and capital investment is expected to take hold, but the slowdown in global expansion due to financial constraints in the United States and Europe will wreak havoc. “
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