International Business News – Japan’s Cabinet Office released the April-June flash GDP report on August 15, showing that the real seasonally adjusted value excluding the impact of price changes increased by 0.5% from the previous quarter, or an annualized growth rate of 2.2%. This is the third consecutive quarter of positive growth. The recovery in personal consumption has pushed up overall GDP growth as “primary measures such as spread prevention” as a countermeasure against the COVID-19 epidemic have been lifted. Equipment investment also grew.
Real GDP reached 542 trillion yen from April to June, surpassing 540 trillion yen from October to December 2019 before the COVID-19 pandemic.
Personal consumption, which accounts for more than half of GDP in April-June, rose 1.1% month-on-month. Consumption of services such as catering and accommodation increased by 1.4% after restrictions on movement against the epidemic were lifted. Investment in equipment, another core indicator of domestic demand, rose 1.4%, the second consecutive quarter of positive growth.