Japan's Economy Shows Unexpected Growth Amid Global Trade Tensions

Japan's economy experienced a much faster growth in the second quarter than initially anticipated, providing relief to policymakers amid ongoing trade disputes and political challenges. Revised data revealed a 2.2% annualized growth rate, up from 1.0%, driven by consumer spending and inventories.

While these figures highlight strong economic performance, uncertainties persist due to U.S. tariff policies and political shifts, such as Prime Minister Shigeru Ishiba's recent resignation. Economists expressed concerns about future consumer spending and export stability impacted by external pressures.

Despite the upgraded economic outlook, the Bank of Japan's immediate policy changes remain unchanged, as experts predict cautious approaches in light of potential tariff challenges. Meanwhile, a recent trade agreement between Tokyo and Washington provides a slight reprieve for Japan's export sector.

(With inputs from agencies.)