Japan’s economy grew faster than estimated, revised data show

TOKYO: Japan's economy grew faster than initially estimated in the second quarter, according to revised data released on Tuesday, ahead of an anticipated interest rate increase next week. The world's fourth-largest economy expanded 0.4% in the three months to June, compared to the 0.3% shown in preliminary figures. Analysts had anticipated the initial reading could complicate the Bank of Japan's efforts to raise interest rates while grappling with high inflation and a weaker yen.

The revised data revealed that private consumption and corporate investment remained weak but surpassed preliminary estimates, while imports were lower than previously projected, contributing to the upward GDP revision. Anticipated to raise its key interest rate next week, the Bank of Japan is under pressure to address surging inflation and a weaker yen.

Prime Minister Sanae Takaichi reportedly intends to reshuffle her cabinet, though no substantial changes are expected. The yen has faced pressure due to elevated oil import costs and doubts about Takaichi's spending plans, but has strengthened this month amid talk of interest rate hikes, approaching its highest level this year. US Treasury Secretary Scott Bessent's comments to central bank governor Kazuo Ueda, expressing support for Japan's decisive market and monetary measures, have also bolstered the currency.