Economics
Japan’s Ramped-Up Business Spending Fuels Faster GDP Growth
- Natural disasters expected to slow growth in current quarter
- Threatened auto tariffs, sales tax hike loom in future
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Japan’s economy grew at the fastest pace in more than two years in the second quarter, revised figures show, with a sharp increase in business investment providing additional momentum for now.
The spurt in capital spending points to continued optimism in the growth outlook, despite simmering global trade tensions. The threat to global trade from President Donald Trump’s tariffs on Chinese goods and a possible levy on all car imports are big risks to Japan’s export-focused manufacturers.