Gdp Growth Surprises Analysts

Japan's Economy Expands Despite Global Headwinds

GDP Growth Surprises Analysts

Japan's economy expanded by an annualized 3.1% in the second quarter of 2020, beating market expectations and rebounding from a contraction in the previous quarter.

The growth was driven by strong exports and consumer spending, according to the preliminary data released by the Cabinet Office on Thursday.

Quarterly Growth Exceeds Expectations

On a quarterly basis, the economy grew by 1.5%, much stronger than the median estimate of 0.8% growth.

This growth was driven by a surge in exports, which increased by 5.8% from the previous quarter.

Consumer spending also contributed to the growth, rising by 1.1% from the previous quarter.

GDP Falls Year-on-Year

Despite the strong quarterly growth, Japan's GDP fell by 0.8% on a year-on-year basis in the second quarter.

This marks the second consecutive quarter of year-on-year decline, as the economy continues to grapple with the impact of the COVID-19 pandemic.

Key Points

• Japan's GDP grew by 3.1% annualized in the second quarter.
• Quarterly growth was 1.5%, exceeding expectations.
• Exports and consumer spending were the main drivers of growth.
• GDP fell by 0.8% year-on-year, marking the second consecutive quarter of decline.