Official Japanese data released on Friday showed a 0.1% year-on-year increase in Japan's gross domestic product (GDP) for the second quarter of this year, extending the growth streak to five consecutive quarters.

The data from Japan's Cabinet Office attributed the growth primarily to strong business investments, while consumer spending remained weak. On a quarterly basis, inflation-adjusted GDP rose by 0.3% compared to Q1 of this year.

Private consumption, which accounts for more than half of Japan's economic output, increased by 0.2% from the previous quarter, driven by strong sales of apparel and automobiles.

Meanwhile, corporate capital expenditure—another key growth contributor—rose by 1.3%, while exports grew 2.0%, supported by demand for electronic components and devices. Imports increased by 0.6%, largely due to higher purchases of crude oil and natural gas.

Japanese Economic Revitalization Minister Ryosei Akazawa stated in a press briefing following the release that the results demonstrate "the economy is recovering at a moderate pace." However, he cautioned about potential downside risks, noting, "We must remain vigilant about the impact of U.S. trade policies on economic activity."

Background:
GDP measures the total value of goods and services produced domestically.