Japan's Economy Grinds Slowly Amid Disappointing GDP Growth

The Japanese economy grew at a slower-than-expected pace in April-June, with gross domestic product rising 1.1% in annualised terms, missing a median market estimate of 2.0% growth.

This development comes as household spending and business investment were weaker than expected, partly offsetting the impact of strong exports.

Kazutaka Maeda, senior economist at Meiji Yasuda Research Institute, said, 'Growth was positive, but the details were somewhat weaker than expected.'

Despite the disappointing results, Maeda does not think they suggest a weakness ahead or affect the timing of the Bank of Japan's next interest rate hike, which is now widely expected as soon as September.