Japan’s economy to pick up in Q2 despite slowing global demand: Reuters poll
4:50 am Friday, August 04th, 2023
By Leika Kihara
TOKYO (Reuters) – Japan’s economy likely grew an annualised 3.1% in April-June to mark a third straight quarter of expansion, according to a Reuters poll, helped by resilience in exports despite slowing global demand.
The increase would follow an annualised 2.7% in the first quarter. On a quarter-on-quarter basis, the economy probably expanded 0.8%.
“The data will show Japan’s economy is recovering moderately with consumption and capital expenditure maintaining momentum,” said Shinichiro Kobayashi, an economist at Mitsubishi UFJ Research & Consulting.
The data would be welcomed by the Bank of Japan which wants a slow but steady phase-out of its massive stimulus programme and took steps last week to allow long-term interest rates to rise more.
External demand likely added 0.9% point to gross domestic product growth in April-June, after shaving off 0.3% point in the first three months of this year, the poll showed.
Capital expenditure is expected to have risen 0.4% after a 1.4% increase and the poll called for private consumption to have edged up 0.1%, slowing from a 0.5% gain.
“Consumption has been recovering, mainly for services industries as the economy has re-opened. But the recovery may have run its course as rising inflation weighs on real income,” said Ryutaro Kono, chief Japan economist at BNP Paribas.
The government will release the preliminary second-quarter GDP data on 8:50 a.m. Tokyo time on Aug. 15.
(Reporting by Leika Kihara; Editing by Edwina Gibbs)
