Japan’s economy to pick up in Q2 despite slowing global demand: Reuters poll
2023.08.04 00:36
© Reuters. FILE PHOTO: A cargo ship and containers are seen at an industrial port in Tokyo, Japan, February 15, 2022. REUTERS/Kim Kyung-Hoon/File Photo
By Leika Kihara
TOKYO (Reuters) – Japan’s economy likely grew an annualised 3.1% in April-June to mark a third straight quarter of expansion, according to a Reuters poll, helped by resilience in exports despite slowing global demand.
The increase would follow an annualised 2.7% in the first quarter. On a quarter-on-quarter basis, the economy probably expanded 0.8%.
“The data will show Japan’s economy is recovering moderately with consumption and capital expenditure maintaining momentum,” said Shinichiro Kobayashi, an economist at Mitsubishi UFJ (NYSE:) Research & Consulting.
The data would be welcomed by the Bank of Japan which wants a slow but steady phase-out of its massive stimulus programme and took steps last week to allow long-term interest rates to rise more.
External demand likely added 0.9% point to gross domestic product growth in April-June, after shaving off 0.3% point in the first three months of this year, the poll showed.
Capital expenditure is expected to have risen 0.4% after a 1.4% increase and the poll called for private consumption to have edged up 0.1%, slowing from a 0.5% gain.
“Consumption has been recovering, mainly for services industries as the economy has re-opened. But the recovery may have run its course as rising inflation weighs on real income,” said Ryutaro Kono, chief Japan economist at BNP Paribas (OTC:).
The government will release the preliminary second-quarter GDP data on 8:50 a.m. Tokyo time on Aug. 15.
