The Japanese economy showed signs of recovery in the second quarter of 2024, growing by 0.8% compared to the previous quarter. This is the most significant growth since the first quarter of 2023, exceeding analysts' forecast by 0.5%. In annual terms, real GDP grew by 3.1%, showing positive dynamics for the first time in two quarters. According to the Cabinet Office, the growth was driven by an increase in consumer spending and investment in equipment. Consumer spending, which grew for the first time in five quarters, increased by 1%, thanks to a 5.17% increase in average wages after successful negotiations between companies and unions. This is the most significant growth in more than 30 years. Business investment also increased by 0.9%, while government spending increased by 0.1%. Exports increased by 1.4% and imports by 1.7%. Nominal GDP, which takes into account inflation, grew by 7.4% year-on-year, exceeding the 600 trillion yen mark (more than $4 trillion) for the first time. This is a historic milestone that the Japanese government set for itself 15 years ago.
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