Data for April-June showed on Monday that Japan’s economy grew for a third consecutive quarter on the strength of private consumption, signaling the nation’s long-awaited recovery from a Covid-induced downturn.
According to official statistics, the world’s third-largest economy saw its gross domestic product (GDP) grow by an annualized 2.2% in the second quarter, a significant increase from the revised 0.1% growth seen in the first three months of the year. It was smaller than a median market forecast for a 2.5 per cent increase. The figure was lower than the median market expectation of a 2.5% rise.
However, the overall economic outlook is still cloudy because of factors like the resurgence of Covid-19 infections, slowing global growth, supply shortages, and rising commodity prices, which are increasing household living costs.