Japan’s economy grew more than announced in the current quarter, as the lifting of local restrictions, such as Covid-19, boosted spending by customers and businesses.
That means Japan’s economy grew a third quarter between April and June, even as considerations about a variety of issues, such as the global slowdown and high energy costs, cloud the outlook.
The gross domestic product (GDP) of the world’s third-largest economy grew by an annualized 3. 5 percent in the current quarter, more powerful than the initial estimate of annualized expansion of 2. 2 percent, the government said Thursday.
The reading, which exceeds the average market forecast of a gain of 2. 9%, equates to a real expansion of 0. 9% quarter-on-quarter compared to the previous quarter.
He advised that domestic demand experienced a modest rebound after the government removed pandemic-related restrictions on economic activity at the end of the first quarter.
Private consumption, which accounts for more than a portion of the country’s GDP, rose 1. 2 percent according to the data, revised upwards from an initial estimate of a 1. 1 percent increase.
Capital spending rose 2. 0 percent, also revised upward from an initial estimate of a 1. 4 percent increase and more than the average market forecast for a 1. 8 percent expansion, according to the data.
Domestic demand as a whole contributed 0. 8 percentage points to revised GDP growth, while net exports added 0. 1 percentage points.
Japan has fallen in other primary economies as the pandemic shook due to a slow recovery in consumption, attributed in part to aging consumers who are reluctant to increase spending on facilities for fear of COVID-19 infections.
Japan’s extremely accommodative policy contrasts sharply with a global wave of interest rate hikes, which has led to a sharp fall in the yen, complicating policymakers’ prospects.
The fall of the Japanese currency, which has lost about 20% to the US. The U. S. economy over the past six months is driving up the price of imports and raising fears that families will be forced to pay more for goods.
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