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Japan Posts Modest Growth Despite US Tariffs

  • Japan's economy likely expanded at an annualized pace of 0.4% in the second quarter, avoiding recession, according to economists surveyed by Bloomberg.
  • The Cabinet Office is set to release preliminary GDP data, reflecting the impact of U.S. tariffs, which began in April and increased from 10% to 15%.
  • Inbound tourist spending rose by 18%, contributing to growth, as the first half of 2025 saw a record number of tourists arriving in Japan.
  • Shinichiro Kobayashi, chief economist at Mitsubishi UFJ Research and Consulting, noted that service exports and business investment were key drivers of this modest expansion.
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Japan posts modest growth despite US tariffs

Japan eked out modest growth in the second quarter despite painful US tariffs, official data showed Friday, in welcome news to embattled Prime Minister Shigeru Ishiba.

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Bloomberg broke the news in United States on Wednesday, August 13, 2025.
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