ISTANBUL

The Japanese economy saw a 0.3% expansion in the second quarter of the year compared to the first quarter, as the exports rebounded from the contraction in the previous three-month period.

The growth exceeded the market forecasts of a 0.1% rise in the gross domestic product (GDP), according to data from the country’s trade ministry released on Friday.

The figure for the first quarter, meanwhile, was upwardly revised to a growth of 0.1%.

Japan's exports contributed 0.3 percentage points to the GPD growth in the April-June period, compared to a 0.8% decline in the previous quarter.

On an annual basis, on the other hand, the country's economy expanded 1.2% in the second quarter, slowing from a 1.8% growth in the Jan.-March period.

The data came as the Japanese economy struggled due to the high tariffs the US has imposed since April. Japan only managed to reach a trade deal with the largest economy on July 23.

The deal saw the Trump administration reducing reciprocal tariffs on Japanese goods to 15%.

Japan also pledged to boost investment in the US as part of a $550 billion initiative under the deal.

Meanwhile, Japanese car firms struggled since the US imposed a 25% tariff on imported cars on April, as the auto exports to the US made up 28.3% of all exports in 2024.

In June, Japan's exports to the US fell 11.4% compared to a year earlier – worsening from an 11% drop in May.

Auto exports to the US plummeted 26.7% in June, a sharper decline than May’s 24.7% decrease.