Japan GDP grows 1% in Q2

Surprise Gain

- MAKIKO YAMAZAKI & KANTARO KOMIYA

JAPAN'S ECONOMY GREW much faster than expected in the second quarter as export volumes held up well against new US tariffs, giving the central bank some of the conditions it needs to resume interest rate hikes this year.

Gross domestic product (GDP) rose 1.0% on an annualised basis, government data showed on Friday, marking the fifth straight quarter of expansion after the previous quarter's contraction was revised to growth.

However, analysts warn global economic uncertainties fuelled by US tariffs could weigh on the world's fourth-largest economy in the coming months, especially as automakers struggle to keep prices down for American customers.