Japan's Economy Surpasses Estimates with Revised Q2 Growth Rate

The Japanese economy expanded at an annualised rate of 1.4% in Q2, according to revised data from the Cabinet Office. This is higher than the initial estimate of 1.1%, but lower than economists' median forecast of 1.6%. Without annualisation, GDP grew by 0.4%, matching the median forecast and surpassing the preliminary reading of a 0.3% rise.

Kento Minami, senior economist at Daiwa Securities, noted that the growth is notable given the potential impact of the Middle East situation on the economy. He believes this means the Bank of Japan can proceed with rate hikes without worrying about the economy's performance.