Japan Economy Misses Forecasts with Slow 1.1% Growth

Japan's economy grew 1.1% in Q2, missing market forecasts of 2.0% growth.

The country's gross domestic product increased by 1.1% on an annualized basis, below the median forecast of 2.0%. On a quarterly basis, Japan's GDP grew by 0.3%, compared to expectations of 0.5%.

Private consumption, which accounts for more than half of Japan's economic output, was unchanged in the second quarter, failing to meet forecasts of a 0.5% increase.

Capital expenditure declined by 1.2%, while exports remained relatively resilient thanks to steady demand in the United States for Japanese hybrid vehicles and shipments of equipment and components related to semiconductor production.