Japan GDP Growth Annualized

Japan’s economy advanced 1.0% on an annualized basis in Q2 2025, exceeding market expectations of 0.4% and accelerating from 0.6% in the prior quarter, flash data showed. This marked the fifth straight quarter of annual growth, underpinned by resilient private consumption amid government measures to ease inflationary pressures from rising food prices—especially rice—and higher energy costs. Capital spending also accelerated, extending its five-quarter growth streak due to higher outlays in anticipation of monetary tightening, strong investment in labor-saving technologies, digitalization, and supply chain diversification. Further, net trade provided a boost, driven by a sharp rebound in exports as Japanese firms accelerated shipments to the U.S. in anticipation of the newly imposed 15% blanket tariffs, which had yet to take full effect. Economists flag that the drag from tariffs may intensify in the coming quarters.