Japan's economy grew more than expected in the second quarter, but trade risks loom
Added 08-09-18 10:02:02pm EST - “Japan's second quarter GDP grew 1.9 percent on an annualized basis in April-June, beating analysts' expectations but trade risks continue to cast a shadow over its outlook.” - Cnbc.com
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Japan's economy grew more than expected in the second quarter, helped by improved household spending and rebounding from a contraction in the previous quarter, but global trade tensions loom as major risks to the export and investment outlook.
The economy grew 1.9 percent on an annualized basis in April-June, more than the median estimate for a 1.4 percent annualized increase. That follows a revised 0.9 percent annualized contraction in the previous quarter, which put an end to the best run of growth since the 1980s bubble economy.
The economy is expected to continue growing due to consumer spending and business investment, but there is growing unease about the pace of future growth, economists say, with the rift between Japan and the United States presenting potential headwinds for growth.
Following a meeting with U.S. Trade Representative Robert Lighthizer on Thursday, Japanese Economy Minister Toshimitsu Motegi appeared to maintain Tokyo's position that it preferred multilateral free-trade agreements over bilateral ones, which has been a point of contention with Washington.
Compared with the previous quarter, gross domestic product rose 0.5 percent, more than the median estimate for a 0.3 percent increase and after a 0.2 percent contraction in January-March.
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