With a surge in exports contributing to an annualized 6% growth in the second quarter, Japan’s economy posted its third consecutive quarterly expansion, according to preliminary government data released on Tuesday, significantly higher than market forecasts of 3.1% growth.
In comparison to the previous quarter, growth in the second quarter came in at 1.5%, nearly doubling the 0.8% projections.
This was the highest quarterly growth rate since the fourth quarter of 2020, when Japan saw quarterly growth of 2.8% and annualized growth of 11.7%.
The GDP report released on Tuesday indicated that Japan’s economy was continuing to improve after the COVID-19 pandemic. However, this narrowing gap between actual and anticipated quarterly growth dampens any longer-term optimism, said the economists.