Japan's Economy Stumbles Forward with 1.1% Growth Rate

Japan's economy has managed to eke out a growth rate of 1.1% in the April-June quarter, despite being buffeted by headwinds on multiple fronts.

The country's real GDP grew at a seasonally adjusted rate of 0.3% from the first quarter to the second quarter of this year, according to data released by the Cabinet Office.

Private consumption was flat in April-June compared to January-March, while exports grew only 0.5%. However, the growth in exports was driven by strong global demand for Japanese autos and semiconductors, particularly from interest in AI technology.

The government has been working to mitigate the impact of the war in Iran on Japan's energy imports, which have surged due to the blockage of the Strait of Hormuz. However, a weak yen has had both positive and negative effects - while it boosts the value of overseas earnings for giant exporters like Toyota, it makes imports more expensive.