Japan's Q2 GDP Growth Revised Higher, Ishiba Resignation Clouds Outlook

2025-09-08 00:13 By Farida Husna 1 min. read

Japan’s GDP expanded 0.5% qoq in Q2 2025, beating a flash estimate of 0.3% and picking up from an upwardly revised 0.1% in Q1.

It was the fifth straight quarterly growth, driven largely by upward revision in private consumption (0.4% vs 0.2% in flash data, after a flat Q1).

Government spending was flat after a 0.5% drop previously.

Net trade added 0.3ppts, as exports rebounded (2.0% vs -0.3% in Q1) while imports slowed sharply (0.6% vs 2.9%).

Exporters rushed shipments ahead of U.S.

tariffs, while automakers cushioned the hit from rising duties by cutting prices to sustain production.

Business investment grew 0.6%, revised down from 1.3% and below forecasts of 1.2%, reflecting the drag from higher borrowing costs, after a 0.7% increase in Q1.

Meanwhile, the sudden resignation of Prime Minister Shigeru Ishiba injected political uncertainty, raising concerns that delays in fiscal support or reform measures could weigh on business sentiment and household confidence in the coming months.



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