Japan’s economy grew 3% in second quarter

Slower exports: A file picture showing newly-manufactured cars awaiting export at port in Yokohama. Japan’s exports and factory output are set to slow in July-September. — Reuters

TOKYO: Heavy capital spending in the second quarter drove Japan’s economy to grow much more quickly than first estimated to hit its fastest pace since 2016, although global trade tensions and a string of natural disasters pose risks to the outlook.

Revised Cabinet office data out on Monday showed the economy grew an annualised 3% in April-June, handily beating economists’ median estimate for 2.6% gain and posting the fastest growth since first-quarter 2016.