Japan's Economy Ekes Out Modest Q2 Growth Amid Iran War

The Japanese economy showed modest growth in the second quarter of this year, despite the impact of the Iran war. According to official data released by the cabinet office, gross domestic product (GDP) grew 0.3 percent between April and June. This reading is lower than market expectations, which forecasted a stronger growth of 0.5 percent.

The annualised GDP expansion was 1.1 percent, falling short of market expectations of 2.0 percent. The discrepancy may lead to increased expectations that the Bank of Japan (BoJ) will hike interest rates as inflation accelerates in the world number four economy.