Japan’s economy demonstrated resilience in the second quarter, posting modest growth despite the adverse effects of US tariffs. According to official data released Friday, this positive economic news offers a welcome reprieve for embattled Prime Minister Shigeru Ishiba, whose political future has been uncertain.
A preliminary estimate from the cabinet office showed that the world’s fourth-largest economy grew by 0.3 percent in the three months ending in June, surpassing market forecasts of 0.1 percent. This growth was further bolstered by an upward revision of the previous quarter’s reading, which now shows a 0.1 percent expansion instead of the previously estimated contraction.
On an annualized basis, Japan’s GDP expanded by 1.0 percent, exceeding market expectations of 0.4 percent and building on the 0.6 percent growth recorded in the previous quarter. Without the upward revision for the first quarter, a second consecutive negative reading would have plunged Japan into a technical recession.
The new figures provide a much-needed boost for Prime Minister Ishiba, who has been under pressure since his coalition lost its majority in the disastrous upper house elections in July. The election results reflected widespread voter anger over the rising cost of living, mirroring a similar political setback in the lower chamber months earlier.
Despite the political turbulence, a recent opinion poll by broadcaster NHK suggested that public support for Ishiba to remain in office is higher than for him to step down. Furthermore, the absence of a clear successor to the 68-year-old leader, who took office in October, and a fragmented opposition make the formation of an alternative government a difficult prospect.
The positive economic data, therefore, not only reflects a resilient Japanese economy but also provides Prime Minister Ishiba with a critical political lifeline as he navigates a challenging domestic landscape.
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