News Update


The Japanese economy is growing far faster than projected.

During the era, the world’s third largest economy saw its Gross Domestic Product (GDP) expand by 6% on an annualized basis.

It is over twice the rate of growth predicted by experts and represents the largest increase in nearly three years.

The yen’s depreciation aided exporters by making Japanese-made items more affordable to consumers worldwide.

Japan’s yen has dropped substantially against major currencies in recent months, falling by more than 10% against the US dollar this year.

“The weak yen is behind the positive GDP numbers,” said Fujitsu’s chief economist Martin Schulz to the BBC.

GDP is one of the most important indicators of how well or poorly an economy is performing.It assists firms in determining when to expand and recruit more employees, and it allows the government to choose how much to tax and spend.

Profits for the country’s automakers, including Toyota, Honda, and Nissan, have risen in recent months due to improved export demand.

The economy of Japan has also benefited from an increase in tourist numbers since the government removed border restrictions at the end of April.

According to the country’s national tourist body, the number of international visitors to Japan has recovered to more than 70% of pre-pandemic levels as of June.

Tourist spending is also projected to bolster the country’s economy starting this month, after China eased a prohibition on group travel.

Prior to the pandemic, Chinese tourists accounted for more than one-third of all tourist spending in Japan.

This is helping to mitigate the impact of the country’s own slowing recovery from the pandemic.

“The main difficulty for Japan’s second half is, however, that the domestic economy is cooling,” Mr Schulz added.


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