Japan GDP grew 0.2% in June on export recovery: JCER

TOKYO — Japan’s gross domestic product rose at an annualized 0.2% in June, on a seasonally adjusted basis, from the previous month thanks to a recovery in exports, with the economy expanding for the first time in two months, according to the Japan Center for Economic Research.

Exports of goods and services for June increased 4.7% from the previous month, reversing a 3% contraction in May. Goods headed for the U.S. and China rose 3.8% and 1.7%, respectively. Imports of goods and services also rose, but at a slower pace than exports, up 2.8%.

Meanwhile, private consumption, which accounts for over 50% of the country’s GDP, declined 0.7%. “While the economy has been steadily stabilizing after the COVID-19 crisis, and consumer confidence has been recovering, actual consumption is weak,” JCER noted in a report.

Based on monthly figures, the think tank now expects an annualized 5.1% expansion in GDP for the April to June quarter, versus the previous three months. The government is set to release official preliminary GDP figures for April to June on Aug. 15.