Japan’s economy grew 2.9 percent on an annualized basis in the second quarter of 2024, the Cabinet Office said in a report released today. The figure was revised down from the initially reported 3.1 percent, due to weaker private consumption and capital spending than previously forecast.
Despite the downward revision, the figure represents the first positive growth in two quarters, as the easing impact of the auto safety data fraud scandal helped boost personal consumption.
Real GDP, adjusted for inflation, also showed an increase of 0.7 percent from the previous quarter, compared to the preliminary reading of 0.8 percent. Capital investment was revised to grow by 0.8 percent in the same period.
Private consumption, which accounts for more than half of GDP, rose 0.9 percent, its first increase in five quarters, although it was slower than the previous increase of 1.0 percent.
The GDP figures are in line with the government’s view that the Japanese economy is recovering at a moderate pace, supporting the Bank of Japan’s stance to raise interest rates further after its second increase this year in July.
On the other hand, exports rose 1.5 percent, supported by auto shipments, while public investment increased 4.1 percent. Annual growth in nominal GDP reached 7.2 percent, and Japan’s GDP surpassed 600 trillion yen, recording 607.58 trillion yen ($4.3 trillion), the target set by the government in 2015.