The weak currency significantly boosts the Japanese economy.

In the three months leading up to the end of June, Japanese economy expanded significantly more quickly than forecast thanks to a stronger than projected export sector.

The Gross Domestic Product (GDP) of the third-largest economy in the world increased by 6% annually over that time.

It represents the largest increase in almost three years and is roughly twice the rate of growth predicted by experts.

Exporters benefited from the yen’s decline in value as customers worldwide found Japanese products to be more affordable.

Japan’s yen has dropped significantly this year as compared to the US dollar and other major currencies in recent months.

The BBC was informed by Martin Schulz, chief economist at Fujitsu, that “the weak yen is behind the positive GDP numbers.”

One of the most crucial metrics for assessing how effectively or poorly an economy is performing is GDP. It enables the government to determine how much to tax and spend, and it aids businesses in determining whether to grow and recruit additional personnel.

Profits for the nation’s automakers, including Toyota, Honda, and Nissan, have climbed recently as a result of a rise in export demand.

While a country’s imports are more expensive due to a weak currency, prices of commodities like oil and gas have decreased recently on international markets.

As a result, the value of imports decreased by 4.3% from the prior quarter, which Nobuko Kobayashi of EY called “a significant problem for GDP growth”.

As a result of the government’s removing border restrictions at the end of April, there has been an increase in tourists, which has benefited Japan’s economy.

According to the nation’s national tourist body, as of June, the number of foreign visitors to Japan had increased to more than 70% of pre-pandemic levels.

After China relaxed its prohibition on group travel this month, spending by visitors is anticipated to boost the nation’s economy even further.

Before the pandemic, more than a third of all tourists to Japan came from China.

This is reducing the effects of the slow pace of the nation’s post-pandemic consumption recovery.

However, the fact that the domestic economy is slowing down is the major challenge for Japan’s second half, according to Mr. Schulz.

The specifics of the statistics, according to Marcel Thieliant of Capital Economics, weren’t as stunning as the headline.

The decline in private consumption, which accounts for more than half of Japan’s economy, was one of the issues he emphasized.

Although earnings for Japanese employees have increased at the quickest rate in 28 years, real wages have been declining for more than a year due to inflation, which is currently hanging close to a four-decade high.

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