Japan’s GDP expanded to 2%

Japan’s GDP expanded in the April-June period. This would be the first rise in 2 quarters.The projection is based on studies by 11 research institutes. All are predicting positive growth. Their annualized figures range from 0.5 to 2 percent.

The government plans to announce the official data on Friday.

The researchers cite a recovery in consumer spending as a major factor. In the January-March quarter, heavy snow and higher vegetable prices dampened consumer spending.

They say that corporate capital expenditure was also brisk. Labor shortages have forced companies to pay higher wages and invest in automation. Construction firms are also facing increased costs due to a building boom ahead of the 2020 Tokyo Olympics.

But many researchers warn that the recovery lacks strength. They point to accelerating trade friction as a worrying factor. US President Donald Trump’s administration is considering levying higher tariffs on auto imports.

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