Private consumption grew 1.1 percent, accounting for most of the growth seen in Q2
After COVID-19 measures were further eased, the Japanese economy grew at an annualised rate of 2.2 percent in Q2, a 0.5 percent increase from Q1’s adjusted real GDP.
Nikkei Asia reported that this expansion marked the third consecutive quarter of growth, and as a result, the annualised GDP reached JPY542.1 trillion, surpassing the pre-COVID record of JPY540.8 trillion in Q4 2019.
“The economy managed to return to its pre-pandemic size, but its recovery pace has been slower than other nations,” said Takeshi Minami, an economist from Norinchukin Research Institute.
He added that growth is expected to continue in Q3, but warned that momentum will slow down. Experts project that Q3 will see annualised gains of 3.2 percent, reported The Japan Times.
Private consumption grew 1.1 percent, accounting for most of the growth seen in Q2. In the private sector, non-residential investments expanded by 1.4 percent, versus a contraction of 0.3 percent in Q1.
Moreover, Japan’s GDP grew 1.1 percent YoY in Q2 compared with the same period of 2021.
Meanwhile, foreign investors are starting to come back due to the sharp depreciation of the yen, according to The Asahi Shimbun.
Overseas investors are taking this as an opportunity to buy real estate properties in Japan at bargain prices. Masahiro Kusanagi, an official of the real estate firm Nihon Agent Inc., also noted that some are even capitalising on the weakening of the yen by selling their properties at inflated prices.
“The yen has dropped around 20 percent in value against the dollar since early this year,” said Ketsu Chou, president of Shenjumiaosuan Co. “That gives overseas investors (buying Japanese properties) a 20 percent discount. Now is the time to invest.”
Nihon Agent reported receiving more inquiries from investors in the United States, China, as well Southeast Asia and the Middle East. Moreover, many of them are investing in Japanese properties for the first time.
The Property Report editors wrote this article. For more information, email: [email protected].
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