Japan’s economy showed stronger growth in the fiscal first quarter of 2025, based on updated government data released on September 8. Real gross domestic product (GDP), the total value of goods and services, rose by 2.2% from April to June. This was higher than the earlier estimate of 1.0%. The rise came from stronger consumer spending and higher inventories. Quarter-on-quarter growth stood at 0.5%, compared to the first report of 0.3%. This marked the fifth quarter in a row of positive results. Growth was seen as significant since Japan depends heavily on exports, especially cars, during a time when the United States increased tariffs on Japanese imports from 2.5% to 15%. Political uncertainty also grew after Prime Minister Shigeru Ishiba resigned as party leader, leading to an election in the coming weeks.

Experts explained that private consumption improved by 0.4%, compared to 0.2% earlier, showing stronger domestic demand. The Nikkei stock index rose in early trading, as markets viewed the leadership change as constructive. Analysts noted that trade disputes and political shifts could create a volatile environment. However, strong demand provided a substantial base for expansion. Economists said a comprehensive strategy will be required. Observers added that leadership stability may play a pivotal role, while a clear report gave more detail of both strengths and risks. Experts also warned that a challenging path remains, making resilient policies necessary to support future growth.