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

Japan's economy grew faster than initially estimated in the second quarter, according to revised data released on Tuesday. The world's fourth-largest economy expanded by 0.4% in the quarter ending June, surpassing the earlier estimate of 0.3%. This upward revision comes ahead of an anticipated interest rate hike by the Bank of Japan.

Despite weak private consumption and corporate investment, lower imports contributed to the revised GDP growth. Analysts had previously suggested that the initial reading could complicate the central bank's efforts to raise interest rates as it grapples with inflation and a weakening yen. Prime Minister Sanae Takaichi reportedly plans to reshuffle her cabinet, though no significant changes are expected.

The yen has faced pressure due to high oil import costs and concerns over Takaichi's spending plans, but the currency has strengthened this month on expectations of interest rate hikes and former US Treasury Secretary Scott Bessent's supportive comments about Japan's market and monetary actions.