Japan's Economy Rebounds with 3.1% Growth in April-June Period

Japan's economy grew at an annual rate of 3.1% in the April-June period, marking a rebound from the previous quarter's contraction, according to government data. Domestic demand surged, and exports saw significant growth. However, political uncertainty looms as Prime Minister Fumio Kishida announced he wouldn't seek reelection.

Japan's economy saw a significant rebound in the April-June period, growing at an annual rate of 3.1%, government data revealed on Thursday. This rebound follows the previous quarter's 0.6% decline, showcasing recovery in the world's fourth largest economy.

Seasonally adjusted GDP, reflecting the value of products and services, increased by 0.8% in the fiscal first quarter. Robust domestic demand, highlighted by improved household consumption and private sector investments, alongside a 5.9% surge in exports, were key contributors to the growth.

Despite the positive data, political uncertainty has clouded the economic forecast. Prime Minister Fumio Kishida's announcement that he will not seek reelection has raised questions about future macroeconomic policies. Analysts are also cautious due to the Bank of Japan's recent interest rate hikes amid global market volatility.

(With inputs from agencies.)