Growth pushed by rise in non-public consumption following the lifting of pandemic curbs in March.
Japan’s economic system grew an annualised 2.2 p.c within the second quarter, as strong non-public consumption offered a lift to the nation’s long-delayed restoration from the COVID-19 pandemic.
The comparatively sturdy financial knowledge launched on Monday comes after gross home product (GDP) grew simply 0.1 p.c in the course of the January-March interval.
The development was pushed largely by a 1.1 p.c rise in non-public consumption, which accounts for greater than half of Japan’s GDP, as eating out, leisure and travel rebounded following the lifting of pandemic curbs in March.
The newest outcomes imply Japan’s 542.12 trillion yen ($4.07 trillion) economic system is now bigger than it was earlier than the pandemic hit.
The world’s third-largest economic system, nonetheless, nonetheless faces an unsure street to restoration amid slowing world development and rising inflation, provide chain constraints, a weakening yen, and a resurgence in home COVID-19 infections, which have topped 200,000 every day instances in latest weeks.
In July, the International Monetary Fund lower Japan’s development outlook for 2022 to 1.7 p.c, down from 2.Four p.c in April.
Japan’s financial restoration from the pandemic has lagged different international locations resulting from weak consumption, which has been exacerbated by ongoing border controls and home pandemic restrictions that continued till March.
The weak restoration has turned the Bank of Japan into a worldwide outlier, with it sticking to an ultra-loose financial coverage as different central banks elevate charges to tame rising inflation.