Japan Surpasses Korea... 2nd Quarter Growth Rate at 1.5% Driven by Strong Car Exports and Tourism Recovery

Korea's Q2 Growth Rate at 0.6%

Exports increased due to automobiles and tourism, leading Japan to consecutive positive growth.

[Image source=Yonhap News]

On the 15th, Japan's Cabinet Office announced that Japan's real Gross Domestic Product (GDP) for the second quarter (April to June) of this year increased by 1.5% (preliminary figure) compared to the previous quarter. The Japanese economy has experienced positive growth for three consecutive quarters since the fourth quarter of last year. In contrast, South Korea's growth was only 0.6% in the second quarter of this year, with negative growth of -0.3% in the fourth quarter of last year and 0.3% growth in the first quarter of this year.

The growth was driven by increased exports. Exports in the second quarter rose 3.2% compared to the previous quarter, while imports decreased by 4.3%. Japan's private broadcaster NHK analyzed that the easing of semiconductor shortages led to increased automobile exports and a rise in foreign tourists visiting Japan, which is counted as exports.

Personal consumption, which accounts for more than half of Japan's GDP, decreased by 0.5% compared to the previous quarter. Although service consumption such as travel and dining out increased as COVID-19 restrictions were lifted, personal consumption declined due to rising prices. Corporate capital investment remained flat with a 0.03% increase compared to the previous quarter. Housing investment increased by 1.9%.

This content was produced with the assistance of AI translation services.