Consumers are driving growth as pandemic restrictions are lifted and they have greater freedom of movement.
Photo:
Akio Kon/Bloomberg News
TOKYO—Japan’s economy recovered its prepandemic size in the April-June quarter with strong consumer spending after pandemic-related movement restrictions were lifted.
The world’s third-largest economy after the U.S. and China expanded 0.5% in the three months to June from the previous quarter. That compares with a flat reading in the previous quarter and consensus forecasts for a 0.6% expansion.
Adjusted for inflation and seasonal factors, Japan’s economy in the latest quarter was bigger than in the final quarter of 2019, the first time that has happened since the Covid-19 pandemic hit in early 2020. The economy expanded 2.2% on an annualized basis, which reflects what would happen if the second-quarter pace continued for a full year.
Private consumption increased 1.1% from the previous quarter. The number of Covid-19 infections declined during the period, encouraging consumers to return to shops and restaurants.
Economists say private consumption will likely remain a growth driver for the Japanese economy in the current July-September period.
Despite a resurgence in Covid-19 infections, the government hasn’t imposed any strict movement restrictions. Inflation is running at slightly above 2% in Japan, much milder than in the U.S. where the economy shrank for a second quarter in a row in the second quarter owing to high inflation and the Federal Reserve’s interest-rate increases.
Japan’s exports grew 0.9% in the April-June quarter from the previous quarter as increasing demand from the U.S. and Europe made up for the negative impact of lockdowns in Shanghai and elsewhere in China during the quarter.
Write to Megumi Fujikawa at megumi.fujikawa@wsj.com
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Consumers are driving growth as pandemic restrictions are lifted and they have greater freedom of movement.
Photo:
Akio Kon/Bloomberg News
TOKYO—Japan’s economy recovered its prepandemic size in the April-June quarter with strong consumer spending after pandemic-related movement restrictions were lifted.
The world’s third-largest economy after the U.S. and China expanded 0.5% in the three months to June from the previous quarter. That compares with a flat reading in the previous quarter and consensus forecasts for a 0.6% expansion.
Adjusted for inflation and seasonal factors, Japan’s economy in the latest quarter was bigger than in the final quarter of 2019, the first time that has happened since the Covid-19 pandemic hit in early 2020. The economy expanded 2.2% on an annualized basis, which reflects what would happen if the second-quarter pace continued for a full year.
Private consumption increased 1.1% from the previous quarter. The number of Covid-19 infections declined during the period, encouraging consumers to return to shops and restaurants.
Economists say private consumption will likely remain a growth driver for the Japanese economy in the current July-September period.
Despite a resurgence in Covid-19 infections, the government hasn’t imposed any strict movement restrictions. Inflation is running at slightly above 2% in Japan, much milder than in the U.S. where the economy shrank for a second quarter in a row in the second quarter owing to high inflation and the Federal Reserve’s interest-rate increases.
Japan’s exports grew 0.9% in the April-June quarter from the previous quarter as increasing demand from the U.S. and Europe made up for the negative impact of lockdowns in Shanghai and elsewhere in China during the quarter.
Write to Megumi Fujikawa at megumi.fujikawa@wsj.com
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8