Japan April-June GDP Growth Seen Revised Up to Annualized 1.6 Pct

Tokyo, Sept. 3 (Jiji Press)–The annualized growth rate of Japan’s real gross domestic product for April-June is expected to be revised up to 1.6 pct, according to the average forecast of 10 private think tanks. The figure is higher than the 1.1 pct rise reported in a preliminary report released by the Cabinet Office last month. The upward revision is seen to be driven mainly by stronger private capital investment. Quarter on quarter, the 10 firms expect the April-June GDP to have grown 0.4 pct on average, up from the preliminary reading of 0.3 pct. The government agency will release the revised April-June GDP data next Tuesday. According to the Finance Ministry’s corporate activity survey report released on Tuesday, capital investment in the first quarter of fiscal 2026 increased mainly in nonmanufacturing industries. Across all industries, excluding financial and insurance firms, capital investment climbed 1.6 pct year on year. Based on these data, the 10 institutes forecast capital investment in the revised GDP data will show a 0.8 pct decline from the previous quarter, an improvement from the 1.2 pct decrease reported in the preliminary report. For the July-September period, higher crude oil prices resulting from tensions in the Middle East are likely to be passed on to consumers through retail prices, putting downward pressure on consumption. Even so, substantial wage hikes are expected to support household purchasing power. Capital investment is also likely to remain resilient, supported by labor-saving investments to address labor shortages and solid demand related to artificial intelligence and semiconductors. Kazutaka Maeda, an economist at Meiji Yasuda Research Institute Inc., said the Japanese economy is expected to “continue recovering, albeit at a moderate pace.” END [Copyright The Jiji Press, Ltd.]