Japan’s Economy Witnesses Increase
(MENAFN) Japan’s economy experienced a 0.3% increase in the second quarter compared to the first, as overseas shipments recovered from the slump recorded in the previous three months.
This economic improvement surpassed analysts’ expectations of a 0.1% uptick in gross domestic product (GDP), based on statistics published by the nation's trade ministry on Friday.
Additionally, the initial GDP estimate for the first quarter was revised upward to reflect a 0.1% expansion.
During the April-to-June timeframe, exports added 0.3 percentage points to GDP growth, contrasting with a 0.8% decrease seen in the prior quarter.
Year-over-year, the economy grew by 1.2% in the second quarter, easing from a 1.8% gain in the January-to-March stretch.
This report comes as Japan grapples with economic strain from steep US-imposed tariffs introduced in April. A trade agreement was only finalized with the world's biggest economy on July 23.
As part of the pact, the Trump administration agreed to lower reciprocal duties on Japanese products to 15%.
In return, Japan committed to enhancing investments in the United States through a $550 billion program outlined in the agreement.
In the meantime, Japanese automobile manufacturers faced difficulties since the 25% US tariff on imported vehicles in April, particularly as cars accounted for 28.3% of Japan’s total exports to the US in 2024.
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