Growth of Japan's Q2 GDP Exceeded Forecasts
Growth of the Japanese economy accelerated in the second quarter, helped by strong household and business spending. Government data showed, that Japan's GDP grew by 1.9% on an annualized basis in April-June, beating a median market forecast for a 1.4%. That followed a revised 0.9% contraction, larger than initial estimates, in the previous quarter.
Compared with the previous quarter, gross domestic product increased by 0.5% in Q2, more than the forecast of a 0.3% increase and following a 0.2% decrease in Q1.
The GDP deflator rose 0.1% year-on-year, ahead of the fall forecast by -0.2% and after a decline of -0.5% in the first quarter. Consumption of the private sector grew by 0.7%, exceeding growth forecasts by 0.2% after a decrease of -0.1% three months before. Expenses for the business grew by 1.3% for the quarter, ahead of forecasts of growth by 0.6% and increasing from 0.3% recorded in the first quarter.
Meanwhile, trade negotiations between the governments of the United States and Japan have started yesterday. The two countries failed to reach any consensus in talks on Thursday between US Trade Representative Robert Lighthizer and Japanese Economy Minister Toshimitsu Motegi. Japan has repeatedly said it prefers multilateral trade negotiations, while the US prefers bilateral free-trade agreement.