Japan’s economy expanded 0.3% in the second quarter of 2025 compared to the first three months of the year, beating forecasts despite tariff headwinds out of the United States.
This was compared to the revised 0.1% growth seen in the first quarter, and was higher than the 0.1% increase expected by economists polled by Reuters.
The GDP beat can be mainly attributed to net exports, which contributed 0.3 percentage points to GDP growth.
On a year-over-year basis, Japan’s GDP expanded 1.2% in the second quarter, falling short of the first quarter’s 1.8% growth.
The country’s GDP grew 1% on an annualized basis, beating the 0.4% rise expected by the Reuters poll.
