Japan's GDP growth exceeds expectations in the second quarter

The Japanese economy grew much faster than expected between April and June, for a third consecutive quarter, as strong household consumption and business investment overshadowed the export shock due to weak global demand .

The data somewhat relieves the Bank of Japan, which is under pressure to follow the other central banks and step up stimulus measures to face growing global risks.

Preliminary data from the Prime Minister's Office showed that GDP grew at an annual rate of 1.8% in the second quarter, far exceeding the median market forecast for a 0.4% increase and after a growth of 2%. 8% between January and March.

A government official told reporters that private consumption, which accounts for about 60 percent of the economy, was up 0.6 percent from January to March, a record growth for the economy. third consecutive quarter, driven by strong demand for cars and air conditioners.

Capital spending also rose 1.5%, doubling badysts' pace from 0.4% in January to March.

According to badysts, the steady influx of tourists and the expected increase in demand for the 2020 Tokyo Olympics have pushed hotel and leisure facilities to increase. According to badysts, the construction of office buildings and public works boosted investment spending, indicating that the strength of the economy was supported by the two sectors least affected by the investment. the slowdown in world trade.

The data showed that domestic demand added 0.7 percentage points to GDP growth, exceeding a negative contribution of 0.3 points from external demand.