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| Japan's economy grows at fastest pace for more than two years | Japan's economy grows at fastest pace for more than two years |
| (35 minutes later) | |
| Japan's economy grew at its fastest pace for more than two years in the second quarter as consumer spending and capital expenditure ramped up. | Japan's economy grew at its fastest pace for more than two years in the second quarter as consumer spending and capital expenditure ramped up. |
| Gross domestic product expanded at an annualised rate of 4% in the April-to-June period, government data showed, beating expectations for a 2.5% rise. | Gross domestic product expanded at an annualised rate of 4% in the April-to-June period, government data showed, beating expectations for a 2.5% rise. |
| The economy grew 1% compared to the previous quarter. | The economy grew 1% compared to the previous quarter. |
| Japan is enjoying its longest economic expansion in a decade, buoyed by spending and investment. | Japan is enjoying its longest economic expansion in a decade, buoyed by spending and investment. |
| The world's third-largest economy has been gaining strength thanks to rising exports, including smart phones and memory chips. | The world's third-largest economy has been gaining strength thanks to rising exports, including smart phones and memory chips. |
| Investment tied to the Tokyo 2020 Olympics has also given Japan's economy a boost in recent months. | Investment tied to the Tokyo 2020 Olympics has also given Japan's economy a boost in recent months. |
| Consumer spending | Consumer spending |
| Strong domestic demand helped to offset a drop in exports during the second quarter of the year. | Strong domestic demand helped to offset a drop in exports during the second quarter of the year. |
| Analysis: Andew Walker, BBC economics correspondent | |
| Is this a triumph for Abenomics? Well up to a point. Certainly, the growth in consumer spending and business investment is welcome. Nonetheless while six consecutive quarters of growth may be Japan's best run in a decade, it is not that impressive compared with other developed economies. | |
| Abenomics is at best unfinished business. At 0.4% inflation is still well below the Bank of Japan's 2% target. And there is the demographic challenge, Japan's rapidly ageing population and declining workforce. | |
| There are reform plans in the Abenomics agenda, intended to encourage more people to get in to the labour market. Japan needs that to work. | |
| Japan has been trying to lift consumer spending, which accounts for more than a half of the country's GDP. | Japan has been trying to lift consumer spending, which accounts for more than a half of the country's GDP. |
| The latest figures could be a help to Prime Minister Shinzo Abe who pledged to reignite growth and spending through his Abenomics reforms. | The latest figures could be a help to Prime Minister Shinzo Abe who pledged to reignite growth and spending through his Abenomics reforms. |
| Mr Abe has seen his popularity sink recently over a series of scandals including claims he exploited his political power to help a friend. | Mr Abe has seen his popularity sink recently over a series of scandals including claims he exploited his political power to help a friend. |
| Falling prices | Falling prices |
| Japan has battled years of deflation, or falling prices, and slow growth following an equity and property market bubble in the early 1990s. | Japan has battled years of deflation, or falling prices, and slow growth following an equity and property market bubble in the early 1990s. |
| The Abenomics programme, a mix of monetary easing, government spending and structural reforms, was designed to reignite the once-booming economy and lift consumer prices. | The Abenomics programme, a mix of monetary easing, government spending and structural reforms, was designed to reignite the once-booming economy and lift consumer prices. |
| Falling prices can discourage spending by consumers, who might put off purchases in the hopes that prices will drop further. | Falling prices can discourage spending by consumers, who might put off purchases in the hopes that prices will drop further. |
| That hurts businesses, as it can stop firms from increasing production, hiring new staff or increasing wages. | That hurts businesses, as it can stop firms from increasing production, hiring new staff or increasing wages. |
| Shinke Yoshiki, chief economist at Dai-ichi Life Research Institute said the latest growth figures were a "good result and tailwind for Abenomics." | Shinke Yoshiki, chief economist at Dai-ichi Life Research Institute said the latest growth figures were a "good result and tailwind for Abenomics." |