Japan's economy logs first growth in 2 quarters

Aug 16, 2021 | News On Japan

Aug 16, 2021 (NHK) - Japan's economy made a modest rebound in the April to June period. The first growth in two quarters comes due mainly to higher exports, while a recovery in consumer spending was slow.

Preliminary figures from the Cabinet Office show that the country's gross domestic product grew 0.3 percent in real terms from the previous quarter, or an annualized 1.3 percent.

The rebound lacked the strength to make up for the annualized 3.7 percent contraction in the January to March period.

Exports grew a robust 2.9 percent from the previous quarter, led by sales of chip-making equipment to China. Corporate capital investment increased 1.7 percent.

But personal spending, which accounts for more than half of GDP, rose only 0.8 percent as a third coronavirus state of emergency was declared for Tokyo and other prefectures in April.

Public investment, including public works spending, shrank 1.5 percent from the previous quarter.

Imports grew significantly, due in part to coronavirus vaccine purchases and chip imports, having a negative impact on GDP.

Source: ANNnewsCH

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