Japan Q2 GDP Beats Forecast On Export Gains Despite U.S. Tariffs

Japan’s GDP grew 0.3% in the second quarter from the previous three months, beating the 0.1% Reuters forecast despite U.S. tariff headwinds, according to CNBC. Growth was supported by a 0.3 percentage-point boost from exports, reversing a 0.8% contraction in the first quarter. Annualized GDP rose 1%, above expectations of 0.4%, while year-over-year growth slowed to 1.2% from 1.8%. The Nikkei 225 gained 0.59% and the yen strengthened to 147.6 per dollar on the data. Economists cautioned that growth may slow as tariffs, now at 15% on all U.S.-bound exports, pressure corporate profits and capital investment.