Japan economy grows for 5th straight quarter

The reading represents a 0.3 pct expansion on a nonannualized basis.

The GDP was boosted by export growth, with sales of automobiles and other products remaining steady despite high tariffs imposed by the administration of U.S. President Donald Trump.

Solid capital investment also contributed to the GDP growth.

Economists surveyed by Jiji Press had predicted a 0.4 pct annualized increase in the GDP, the value of goods and services produced within the country.

While revised data for January-March released in June had shown that the country's real GDP in the period was down 0.04 pct from the previous quarter, the reading was revised again to show positive growth of 0.1 pct due to stronger-than-expected personal consumption and exports.

In April-June, private consumption, a key driver of domestic demand, increased 0.2 pct from the previous quarter in real terms.

While purchases of cars and summer clothes increased, spending on beverages and food was sluggish due to price increases.

Expenditures on dining out and accommodation also decreased.

Corporate capital spending expanded 1.3 pct, up for the fifth consecutive quarter, reflecting robust investment in software and construction machinery.

While housing investment climbed 0.8 pct, public investment shrank 0.5 pct.

Exports went up 2.0 pct, the first increase in two quarters.

Although the imposition of the U.S. additional and reciprocal tariffs on cars and auto parts started in April, Japanese automakers avoided a decline in sales by lowering their export prices.

Exports of electronic parts and devices also grew.

Spending by inbound visitors, which is recorded as exports in the governmental statistics, saw slower growth.

Imports, which constitute a drag on GDP growth, rose 0.6 pct, driven by increased purchases of crude oil and natural gas.

Domestic demand made a negative contribution of 0.1 percentage point to the April-June GDP growth, while external demand made a positive contribution of 0.3 point.

In nominal terms, the GDP grew 1.3 pct in the second quarter of 2025 for an annualized rise of 5.1 pct.

On the outlook of the domestic economy, Japanese economic and fiscal policy minister Ryosei Akazawa told a press conference, "We need to stay vigilant over the risk of an economic downturn caused by the U.S. trade policy."