Japan’s economy rebounded in the second quarter, the return to growth despite growing global trade tensions.
The economy grew faster than expected annualised pace of 1.9%, supported by private consumption.
The growth came after the japanese economy declined in the first quarter of 2018, for the first time in two years.
The release of the Japanese data officials in Washington to discuss trade between increased trade tensions with the UNITED states.Momentum ‘slowing down’
In japan, growth rate in the April-June period, beating analysts ‘ expectations of an annualised rate of 1.4%, and came after, the third-largest economy contracted by a revised 0.9% in the first quarter.
The expense of the consumer are at the base of the economy between April and June, but the external demand – exports minus imports-which have weighed on growth.
“While real GDP growth in Q2 was strong and higher than the consensus forecast, we believe it is reasonable to conclude that the dynamics of growth for the Japanese economy, and the whole gradually starting to slow,” Nomura said in a research note.
The figures came to Japan the Minister of state for Economic Revitalization Toshimitsu Motegi met with the US Trade Representative Robert Lighthizer Washington, dc.
Mr. Motegi said that they had a frank exchange of views”, but reiterated the position of Japan is that multilateral talks are the best ways to address the trade issues, according to Reuters.
Last year, the Trump administration abandoned the Trans-Pacific Partnership, a trade agreement, of which Japan is one of the key actors, as Mr. Trump has carried out a protectionist agenda after taking office in 2016.
The who has given US the tariffs imposed on many of its major trading partners, and has threatened to slap tariffs on all Chinese imports in the US.
As a result, Japan has begun to focus on other markets. Last month, Japan and the European Union signed one of the world’s largest free trade deals, which cover almost a third of the world’s gross domestic product.