TOKYO: Japan's economy grew 1.5 percent in the three months to June, official data showed Tuesday, beating expectations on the back of strong exports.
The average forecast for quarter-on-quarter growth in the world's third-largest economy had been 0.8 percent, according to Bloomberg News.
The data, however, also underscored the continued weakness of domestic demand as families struggle in the face of raising prices.
"Japan's exports have recovered as the supplies crisis eased for the auto sector while the yen's depreciation provided support," Ryutaro Kono, chief economist at BNP Paribas, wrote in a note issued before the release of the data.
Hiroyuki Ueno, senior economist at SuMi TRUST, also said pent-up demand from the pandemic and an increase in capital investment were boosting the economy.
"The hospitality sector is expected to remain a driver of economic growth due to the increase in inbound tourism, as the pandemic is now in the rearview mirror," he wrote in a report ahead of the release of the data.
"Although the number of inbound visitors to Japan has not yet returned to pre-pandemic levels, the per capita consumption of tourists during their stay in Japan has increased, partly due to the weak yen," he wrote.