Japan Economy Projected to Grow Third Consecutive Quarter

The Government of Japan is expected to report a third consecutive quarter of economic expansion for the April-June period. A Reuters poll of 15 economists indicates a median forecast of 2.0% annualized growth, a slight increase from the 1.8% expansion recorded in the first quarter.

Growth is primarily driven by firm private consumption and capital investment. These domestic strengths were supported by government cost-of-living measures and strategic efforts to secure alternative energy supplies. This internal resilience helped the economy offset headwinds from the U.S.-Israeli war with Iran, which disrupted global supply chains and increased the cost of raw materials.

The Bank of Japan will evaluate these growth figures to determine whether to raise interest rates during its September meeting. Preliminary GDP data is scheduled for official release on August 17.