Forex – According to revised data, the Japanese economy grew at an annual rate of 2.9% in the April-June period, slower than the previous report of 3.1% growth.
The economy grew by 1.8% quarter-on-quarter, without adjusting for inflation, and the data confirmed that the total value of the economy exceeded ¥600 trillion ($4.2 trillion) for the first time.
This suggests that obvious risks remain, including to US economic growth, which has a major impact on export-reliant Japan.
Political uncertainty in Japan is another risk as the ruling LDP prepares to elect a new leader. About a dozen candidates are running to succeed Prime Minister Fumio Kishida as leader of the Liberal Democratic Party. Because the party controls parliament, the winner of the Sept. 27 vote is almost certain to become the next prime minister.
The world’s fourth-largest economy grew 0.7% in the first quarter of the financial year, recovering from a contraction in the previous quarter, according to the Cabinet Office.
GDP figures showed that domestic demand grew strongly by 3.0% quarter-on-quarter, driven by healthy household consumption and private sector investment, as well as government investment. Exports grew by 6.1%, even more than the previously announced 5.9% growth.
Japan’s GDP shrank by 0.6% in the January-March period after growing by 0.1% in the October-December period of last year. Japan’s weakening economic power is a major source of concern for the country, which the IMF predicts will fall to fifth place in the coming years, behind the US, China, Germany and India.
