Japan’s GDP has expanded at an annualized rate of 3.1% in the second quarter of 2024, a preliminary estimate showed. That followed a 2.3% contraction in the prior quarter.
In comparison, market consensus had pointed to a 2.1% GDP growth.
The latest figure marked the fastest annual growth rate since Q2 of 2023, as it was mostly underpinned by a substantial rebound in private consumption after spring wage negotiations resulted in an average pay raise of 5.17% – the highest in over 30 years.
Additionally, business spending rebounded, supported by the ongoing recovery in the automotive sector.
On the other hand, net trade had a negative contribution to GDP growth for the second straight quarter.
The Japanese Yen was little changed on the day against the Euro, with the EUR/JPY currency pair last trading at 162.122.
The minor Forex pair has rebounded from a 34-week low of 154.393, which it registered on August 5th.
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