Japan’s economy grew 1.0% in Q2, beating expectations, fueled by strong exports and capital spending. Analysts warn of global economic uncertainties due to U.S. tariffs impacting automakers. Private consumption rose 0.2%, with the Bank of Japan monitoring consumption and wage trends. Capital spending increased by 1.3%, contributing to growth.

The United States imposed tariffs on Japanese imports, affecting GDP by 0.3-0.4%. Despite this, Japan’s economy is recovering modestly, with a U.S.-Japan trade deal supporting potential interest rate hikes. Economists predict a decline in exports in Q3 due to passing on costs to U.S. customers. Private consumption remains crucial for economic growth.

Read more at Yahoo Finance.: Japan posts unexpectedly strong GDP, helped by resilient exports