Japan’s economy grew faster in the first quarter of 2025, according to government data released on September 8. Real gross domestic product (GDP), the value of goods and services, rose by 2.2% from April to June. The earlier estimate was only 1.0%. The increase came from strong consumer spending and higher stocks of goods. Quarter-on-quarter growth stood at 0.5%, compared to 0.3% before. This was seen as notable because Japan relies heavily on exports, especially cars, while the United States raised tariffs on imports. At the same time, changes in the business environment also affected the outlook.

Experts reported that private consumption rose by 0.4%, showing better domestic demand. The Nikkei stock index also climbed as markets viewed the change positively. Analysts said trade disputes and political shifts may bring adverse effects. However, strong demand created a prosperous base for growth. Economists advised a prudent approach, while observers noted that leadership will have a considerable impact on stability.