Japan GDP Growth Misses Expectations at 1.1%

Japan's economy expanded at an annualized rate of 1.1% in the second quarter, falling short of expectations for 2% growth.

The softer domestic demand was offset by strong exports, which were driven by a weak yen rather than higher shipment volumes.

Exports from Japan beat forecasts for all three months of the quarter, but this growth may not be sustainable in the face of rising energy prices due to the Iran conflict.