Japan's Economic Upsurge: Revised GDP Figures Rise

Japan's GDP growth was revised to 2.2% annualised in Q2, significantly higher than the initial estimate. This revision was driven by increased consumption and a new trade deal with the U.S. However, political uncertainty following Prime Minister Shigeru Ishiba's resignation may affect future economic policies.

Japan's economic performance exceeded expectations in the second quarter, achieving a 2.2% annualised growth rate, according to recently revised figures from the Cabinet Office.

This rise was significantly above the initial 1.0% estimate and driven by increased private consumption, capital expenditure, and a formalised trade agreement with the U.S. Prime Minister Shigeru Ishiba's recent resignation introduces uncertainty into Japan's policymaking environment, potentially influencing future economic outcomes.

The trade deal with the United States, which reduces tariffs on Japanese automobile imports, offers temporary relief to Japan's export-reliant economy. Despite the positive growth figures, political and trade headwinds could still pose challenges.

(With inputs from agencies.)