AprilJune GDP growth at 6.0 annualised, 1.5 qq
Exports drive Q2 growth, consumption falls
Solid GDP good news for policymakers

TOKYO, Aug 15 Reuters Japan39;s economy grew much faster than expected in AprilJune, as brisk auto exports and tourist arrivals helped offset the drag from a slowing postCOVID consumer recovery, although global recession prospects cloud the outlook.

The 6.0 annualised growth in Japan39;s economy translated into a quarterly gain of 1.5, much bigger than median estimates of 0.8 in a Reuters poll and bringing gross domestic product GDP to a record high.

It was the fastest expansion since the final quarter of 2020 and followed a revised 3.7 expansion in JanuaryMarch.

While the headline GDP data provides some relief to policymakers seeking to balance economic growth with sustainable inflation, it masks underlying weakness in the household sector.

Marcel Thieliant, head of AsiaPacific at Capital Economics, said the exportdriven momentum in growth is unlikely to be sustained.

And while capital goods exports bounced back in June as the largest falls in overseas investment are now behind us, we do not expect a vigorous recovery, Thieliant said.

Private consumption, which makes up more than half of the economy, fell 0.5 quarteronquarter in the AprilJune period, as price hikes hit sales of food and household appliances.

Exports expanded 3.2 in the second quarter led by car exports and inbound tourism, while capital expenditure was flat….