Japan’s GDP sees 2.9 percent rise yr/yr in Q2, slower than estimates

(MENAFN) Japan's gross domestic product (GDP) experienced a 2.9 percent increase year-on-year in the second quarter of 2024, according to data released by the Cabinet Office on Monday. This figure marks a notable improvement from the previous quarter, when the economy had contracted by 2.4 percent. However, the growth fell short of market expectations, which had predicted a 3.2 percent increase. The revised growth rate underscores a slower-than-anticipated economic recovery for the world's fourth-largest economy.

In the April-to-June period, Japan's economy grew by 0.7 percent, which is a slight adjustment from the preliminary data that initially suggested a 0.8 percent growth. This downward revision reflects a more modest expansion than initially forecasted, revealing a more cautious economic trajectory for the country.

Furthermore, the growth rates for private consumption and capital investment were both revised downwards. Private consumption growth was adjusted to 0.9 percent, indicating a slower increase than previously estimated. Similarly, capital investment growth was revised to 0.8 percent, suggesting a less vigorous investment climate during the period.

These revisions highlight the challenges faced by Japan's economy as it navigates through a period of slower-than-expected growth. The lower-than-forecasted figures for both private consumption and capital investment underscore the difficulties in achieving robust economic expansion, despite the initial optimism reflected in the preliminary data.

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