Japan’s economy recovers in Q2
Japans’ economy beat recovery expectations in the second quarter after a decline at the start of the year. The development indicated the country’s consumption and capital expenditure’s recuperation from the COVID-19 pandemic blow.
Preliminary gross domestic product (GDP) data on Monday showed an annualized 1.3% growth in April-June after a 3.7% drop in the previous quarter. The figure was higher than a median market forecast of 0.7% increase.
Consumption climbed 0.8% in April-June from the previous quarter. It surpassed market forecast of a 0.1% fall and a 1.0% drop seen in the first quarter.
Capital expenditure also tallied a 1.7% rise after slipping 1.3% in the previous quarter. It resulted in domestic demand contributing 0.6% point to GDP growth.
Despite exceeding predictions, Japan’s economic recovery lags behind other developed countries like the United States, which recorded an annualized 6.5% expansion during the same period.