TOKYO – The gross domestic product (GDP) of Japan increased by 1.9 percent year-on-year in the second quarter, the government said on Friday.
In the second quarter of the year, the world’s third largest economy grew 0.5 percent compared to the January-March period, according to data published by the Cabinet Office.
In the previous quarter, the Japanese GDP had fallen 0.6 percent year-on-year and 0.2 percent quarter-on-quarter, according to the government’s revised data.
The Japanese economy thus rebounded after its first-quarter contraction and avoided falling into recession, driven mainly by household spending and business investment.
Domestic consumption, the main pillar bolstering Japan’s GDP, rose 0.7 percent quarter-on-quarter and 2.8 percent year-on-year.
Household spending is a key part of the economy policy known as “Abenomics,” which aims to create a “virtuous circle” of corporate benefits, wage increases as well as price increases and lift Japan out of deflation.
The investment of corporate capital, another important element for Japan’s economy, advanced 1.3 percent quarter-on-quarter and 5.2 percent year-on-year.
Public spending, on the other hand, dropped 0.1 percent compared to the previous quarter and 0.5 percent compared to the same period of 2017.
Exports, one of the components that had contributed most to the national economy until the first quarter of the year, continued at a good pace and advanced by 0.8 percent year-on-year and 0.2 percent quarter-on-quarter.