Japan posts unexpectedly strong GDP, helped by resilient exports

Written by Mackeo Yamazaki and Kanaro Komia

Tokyo’s economy (Reuters) -Japanese economy has grown much faster than expected in the second quarter, as export volumes were well filmed against the new American definitions, giving the central bank some conditions it needs to resume high interest rates this year.

The total government data of the GDP (GDP) showed 1.0 % on an annual basis.

However, analysts warn of cases of global economic uncertainty fueled by the American customs tariff for the fourth largest economy in the world in the coming months, especially since car makers are fighting to maintain prices for American clients.

“The data of June to June-June-the real influence of Trump’s definitions, said Tacomy Tsunoda, senior economists at the Centin Institute of the Central Bank. “Exports were strong thanks to the sizes of solid cars and demand at the last minute of Asian technology manufacturers before some sectoral tariffs. But these are not sustainable at all.”

The increase in GDP through amazing flexible exports and capital expenditures and comparing them with the average market expectations to achieve 0.4 % gains in a Reuters poll. This followed 0.6 % in the previous quarter, which was revised from 0.2 % shrinkage.

Reading is translated into a quarterly increase of 0.3 %, better than an average appreciation for an increase of 0.1 %.

Strong data with China, which has seen the growth of the factory output in an eight -month decrease and sharply retail sales in July.

Special consumption, which represents more than half of the economic output in Japan, increased by 0.2 %, compared to the market estimate, an increase of 0.1 %. It grew at the same pace of the previous quarter.

Consumption and wages trends are factors that monitor the bank’s bank measurement and set the timing of the next interest rate.

Capital spending, the main driver of domestic demand, increased by 1.3 % in the second quarter, compared to 0.5 % in a Reuters poll.

The net external demand, or exports minus imports, contributed 0.3 points to growth, compared to a negative contribution of 0.8 points in the March-March period.

The United States imposed a 25 % tariff on cars and car parts in April and threatened by 25 % on most other Japanese imports. Later, a trade deal in July, which reduced tariffs to 15 % against a Japanese investment package of $ 550 billion.

Japanese Economy Minister Riosi Akazawa told a press conference that the latest results of GDP confirmed that the country’s economy is recovering modestly.