TOKYO : Japan's economy grew faster than the initially estimated in the April-June quarter, helped by solid capital expenditure, although a resurgence in COVID-19 is undermining service-sector consumption and clouding the economy's outlook.
It followed Prime Minister Yoshihide Suga's announcement last Friday that he was stepping down, paving the way for the Sept. 29 ruling party leadership race, in which contenders will outline their plans to revive the world's No. 3 economy. However, global chip shortages may put a drag on Japanese car production and shipments while signs of China's economic slowdown emerge as sources of concern.
The capital expenditure component of GDP grew 2.3per cent in the second quarter from January-March, bigger than the median forecast for 2.0per cent growth and the preliminary 1.7per cent gain.