Japan Economy Expands 1.4% Annually in Q2, Beating Forecasts

The Japanese economy expanded at an annualized pace of 1.4% in April-June, beating initial forecasts and showing some resilience despite weakness in domestic demand and business investment.

This revised data was released on Tuesday, surpassing the predicted 1.1% growth rate, and also marked an upgrade from the initial estimate of 1.1%. On a quarter-on-quarter basis, Japan's economy grew 0.4%, compared to a 0.3% forecast and 0.5% expansion in the previous quarter.

The stronger-than-expected result was largely driven by an acceleration in, which rose 0.5% from the previous quarter, following 0.3% growth in the first quarter. In contrast, was flat, matching forecasts, after rising 0.3% in the previous quarter.

However, did fall 0.9%, a smaller decline than the 1.2% drop expected, and the index rose 2.6% year-on-year, meeting forecasts but slowing from 3.2% in the previous quarter.