Asien: Japans Wirtschaft wuchs im Frühjahr schwächer als erwartet

Tokyo - Japan's economy grew more slowly than anticipated in the spring, according to government figures. The country's Gross Domestic Product (GDP) expanded by 1.1 percent year-on-year in the April-to-June period, based on data released on Monday. This figure fell short of the average estimate from analysts, who predicted a 2.0 percent increase.

The economy expanded by 0.3 percent compared to the previous quarter, short of the 0.5 percent rise expected by experts. Private consumption, which accounts for more than half of economic output, remained stagnant. It was weighed down by rising commodity costs and supply bottlenecks caused by the conflict in the Middle East. Corporate investment also declined by 1.2 percent.

Meanwhile, exports bolstered growth, benefiting from steady demand for Japanese hybrid vehicles in the United States and global investments in Artificial Intelligence (AI). The economy grew by a revised 1.9 percent in the preceding quarter, marking the third consecutive quarter of growth. Consumption and wages are seen as crucial for the Bank of Japan (BOJ) in deciding on further interest rate hikes.

However, analysts cautioned that rising import costs and price pressures could weigh on consumption in the longer term. Demand for durable goods such as cars and air conditioners may decline in the third quarter after temporarily being boosted by regulatory changes in the spring.