TOKYO, Japan’s economy expanded at an annualized pace of 1.8 percent in the April-June period, up for the third consecutive quarter, buoyed by robust private consumption and business investment, the government said Friday.
The gain of the gross domestic product (GDP) followed a revised 2.8 percent growth in the previous quarter, according to preliminary data released by the Cabinet Office.
On a quarterly basis, the world’s third-biggest economy’s GDP grew 0.4 percent in the three months ended June 30 from the January-March period.
“Data showed the Japanese economy continues to recover moderately led by robust consumption and capital expenditure,” Economy and Fiscal Policy Minister Toshimitsu Motegi told a press conference after the Cabinet released GDP data.
Motegi also said the improvement in the employment and income environments, which support supporting domestic demand, contributed to the growth.
“But we should pay attention to global economic outlook, including the US-China trade tensions, China’s economy and fluctuations in financial markets. If the risks surface, we will take countermeasures without hesitation,” the minister added.
Personal consumption, which accounts for more than half of Japan’s GDP, rose 0.6 percent, thanks to solid spending during a 10-day holiday in May to mark Emperor Naruhito’s ascension and strong demand for durable goods.
Corporate capital spending, another major contributor to growth, also increased 1.5 percent as firms spent more on automation to deal with a labor shortage. Concerning foreign demand, exports edged down 0.1 percent amid China’s economic slowdown. GDP is the total value of goods and services produced domestically.
Source: Kuwait News Agency