Tuesday, 27 September, 2022

Japan's GDP expands in Q2 after Covid curbs lifted

Japan's economy expanded in the three months to June, official data showed Monday, after the government lifted Covid-19 curbs on businesses.

The world's third-largest economy grew 0.5 percent quarter-on-quarter due to stronger consumption and capital investment, but the rise was below market expectations of 0.7 percent.

While the country never imposed strict stay-at-home orders during the pandemic, the government in March removed virus restrictions primarily targeting business opening hours.

Inbound tourism remains limited to group tours, however, and the economy is facing headwinds -- from the energy price crisis to fears of a global recession fuelled by biting inflation.

From April to June, private consumption grew 1.1 percent compared with the 0.3 percent registered in the January-March quarter, according to the data released by the Cabinet Office

Capital spending expanded 1.4 percent, compared with a 0.3 percent contraction in the previous quarter.

Consumer prices are rising in Japan, although not at the blistering rate seen in the United States and many other major economies.

Japan is currently experiencing a record-breaking wave of Covid-19 infections. It has logged around 35,000 deaths from the disease overall, far lower than many other countries.