Resurgent car exports propelled Japan’s economy to a larger than expected expansion in the second quarter of the year, offsetting immediate concerns that the country was vulnerable to global recession.
Japan’s gross domestic product grew at an annualised rate of 6 per cent during the April-June period, significantly higher than the 2.9 per cent consensus estimate of economists and the third straight quarter of expansion.
Analysts said the weak yen, which remains close to multi-decade lows, had been a boon to the nation’s exporters even as it hit domestic consumption by contributing to higher prices for imports.
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