Japan GDP beats forecasts as exports bounce back

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However, while the headline GDP data provides some relief to policymakers seeking to balance economic growth with sustainable inflation, it masks underlying weakness in the household sector. Marcel Thieliant, head of Asia-Pacific at Capital Economics, said the export-driven momentum in growth is unlikely to be sustained. “And while capital goods exports bounced back in June as the largest falls in overseas investment are now behind us, we do not expect a vigorous recovery,” Thieliant said. Private consumption, which makes up more than half of the economy, fell 0.5 per cent quarter-on-quarter in the April-June period, as price hikes hit sales...