Japan's Modest Growth Masks Underlying Strains Japan's second quarter GDP growth rate of 1. 1% on an annualized basis fell short of market expectations, which had forecasted a 2% expansion.
While exports remain a driving force behind this modest growth, the softening of domestic demand is a worrying sign that may ultimately outweigh the boost provided by strong export numbers.
The Iran conflict has driven up energy prices in Japan, placing additional burdens on businesses and households alike.