TOKYO (AP) \u2014 Japan\u2019s economy expanded at a stronger rate in the fiscal first quarter than previously estimated, despite worries about U.S. tariffs and domestic political uncertainty, according to government data released Monday.<\/p>\n
The Cabinet Office said Japan\u2019s real gross domestic product, the sum value of a nation\u2019s goods and services, grew at a seasonally adjusted 2.2% annualized rate in the April-June quarter from the previous quarter.<\/p>\n
That was better than the preliminary estimate for 1.0% growth, which came out last month, as solid consumer spending and inventories lifted growth more than previously thought.<\/p>\n
Quarter-on-quarter, Japan\u2019s GDP grew 0.5%, up from the initial estimate for a 0.3% rise, which was also what analysts projected, according to RaboResearch.<\/p>\n
That marked the fifth straight quarter of growth. The annualized number shows what the growth, or contraction, would have been if the quarterly rate continued for a year.<\/p>\n
U.S. President Donald Trump\u2019s move to raise tariffs on Japanese imports<\/a> is a major worry for the export-dependent economy, especially auto exports, which now face a 15% tariff, up from 2.5%.<\/p>\n Another concern is the looming political uncertainty after Prime Minister Shigeru Ishiba announced Sunday he is stepping down<\/a> as head of the ruling party. A party election will follow over the next weeks.<\/p>\n Private consumption rose 0.4%, according to the latest government data, better than the initial estimate for 0.2% growth, raising domestic demand growth into positive territory at 0.2% growth, instead of contracting 0.1%, as in the earlier data.<\/p>\n Japan\u2019s benchmark Nikkei rose in morning trading, despite Ishiba\u2019s announcement on resigning, as the move was somewhat expected, and the market appeared to welcome the action as a step forward.<\/p>\n But analysts say uncertainty remains because it\u2019s still unclear what parties might be brought in to form a coalition with the ruling party.<\/p>\n ___<\/p>\n