Japan GDP growth upwardly revised for second quarter

Japan's economy grew at a stronger rate than was previously thought, revised data showed Monday.

According to the second release of preliminary estimates from Japan's Cabinet Office, the country's seasonally adjusted gross domestic product increased 2.2% on an annualised basis in the second quarter of 2025, exceeding the initial estimate of a 1.0% increase.

GDP is now estimated to have grown 0.5% quarter-on-quarter, accelerating from 0.3% previously.

Based on the FXStreet-cited consensus forecast, no change was expected from the initial estimates.

As stated in the second preliminary estimates issued in June, the Cabinet Office concluded that GDP contracted 0.2% on an annualised basis in the first quarter, and was flat quarter-on-quarter.

Min Joo Kang, senior economist, South Korea and Japan, ING, commented: "Japan's upward GDP revision suggests wage growth and household spending will continue to drive the economy forward. However, Prime Minister Ishiba's resignation increases macro policy risk. We maintain our October rate hike forecast for now, though uncertainty is increasing."