Japan April-June GDP Growth Seen at Annualized 2.1 Pct

Tokyo, Aug. 10 (Jiji Press)–Japan’s seasonally adjusted gross domestic product in April-June is projected to have grown a real 2.1 pct from the previous quarter on an annualized basis. The figure represents the average forecast among 10 private-sector think tanks. The Japanese economy is estimated to have expanded for the third consecutive quarter, supported by solid private consumption reflecting continued rises in real wages and a respite in food price surges, according to the think tanks. The Cabinet Office is scheduled to release preliminary GDP data for the first quarter of fiscal 2026 on Aug. 17. Private consumption, a pillar in domestic demand, is seen to have increased 0.5 pct from the previous quarter thanks to a rise in car purchases reflecting the abolition of the environment performance tax as well as a last-minute surge in purchases of air conditioners ahead of the introduction of stricter energy-saving standards in April next year. A 0.4 pct increase is forecast for corporate capital expenditures on the back of growth in demand for artificial intelligence and semiconductors and investment in labor-saving equipment. Exports are estimated to have fallen 0.1 pct owing to weaker exports to the Middle East. Imports are projected to have decreased by 1.4 pct partly because crude oil imports from the region plummeted. “The Japanese economy has been firmer than expected due in part to strong AI-related demand despite the Middle East turmoil,” Yoshiki Shinke, senior executive economist at Daiichi Life Research Institute Co., said. END [Copyright The Jiji Press, Ltd.]