The Japanese economy grew much faster than expected in the second quarter of 2025.
According to modified data, the Japanese economy increased faster than expected in the second quarter of 2025 and expanded 2.2 % on the basis of annual. The number published by the Cabinet Office has left a preliminary growth forecast of 1.0 %behind and exceeded the average forecast of economists. GDP has been modified into 0.5 percent of the first estimate of 0.3 percent in a quarter of a quarter of a quarter, and indicates the durability of the fourth largest economy in the world despite global wind and uncertainty. Private consumption, making more than half of Japan's GDP, up 0.4 %, up 0.2 % in preliminary reading. However, the capital cost increased by only 0.6 % and pointed out that some hesitated in business investments by maintaining less than 1.2 percent, estimated to be less than 1.3 %. After the sudden resignation of Prime Minister Shigeru Ishiba on Sunday, the appearance of political instability increased signs of politics in the coming months. Now the attention has been translated into the third quarter GDP data, which will reveal the entire impact of the latest US customs tax rates. The new Tokyo-Washington Trade Agreement is effective last week and put lower customs missions for Japanese car exports, which can provide some support for Japanese export economy.
