Japan's economy unexpectedly showed growth in the second quarter of the year as consumer spending picked up following the end of coronavirus restrictions on businesses.
Most recently, government data showed Japan's gross domestic product (GDP) rose 2.2% year-on-year in the April to June period, slightly missing expectations for a 2.5% increase and a 0.5% contraction in the previous quarter.
While on a monthly basis, the Japanese economy grew by 0.5%, lower than the expected increase of 0.7%.
Among the contributors to this expansion was a surge in private consumption at an annual rate of 4.6% and public investment increased at an annual rate of 3.8%. Exports are reported to have increased by 3.7% while imports increased by 2.7% year on year.
Analysts are of the view that the economy has managed to return to pre-pandemic surroundings, but the pace of recovery has been slower than in other countries.
Covid-19 restrictions on businesses that ended at the end of March have helped stimulate the economy.
However, the Russia-Ukraine war has created new risks for the world's third largest economy which has pushed prices higher especially in the energy sector due to global inflation.
