Japan Economy Slows in Second Quarter Amid Weak Domestic Demand

The Japanese economy grew at a slower pace in the second quarter than expected due to weaker domestic demand. According to government data, gross domestic product (GDP) expanded at an annualized 1.1% pace from April to June, below the predicted 2% growth rate.

This decline is attributed to reduced public inventories and a decrease in household consumption. The strength of exports was partly supported by the weaker yen rather than a comparable increase in the volume of goods shipped.

Norihiro Yamaguchi, lead Japan economist at Oxford Economics, stated that purchases of non-durable goods and services declined as consumer sentiment deteriorated.