Japan Q2 GDP improves to 1.5% QoQ versus 0.8% expected and 0.7% prior, USD/JPY slides below 145.50

Japanese economic growth came in as 1.5% QoQ versus 0.8% expected and 0.7% prior, per the preliminary readings of the second quarter (Q2) 2023 Gross Domestic Product (GDP) figures.

That said, the Annualized GDP rose to 6.0% versus 3.1% expected and 2.7% prior.

Further, GDP Deflator came in as 3.4% YoY, versus expectations of being unchanged at 2.0%.

Following the data release, a Japanese Government Official said, “Japan's Private Consumption falls for the first time in 3 quarters.”

The diplomat also added that Japan Q2 annualized real GDP growth for three straight quarters, the fastest since Q4 2020. The Government Official also stated that the GDP Deflator posted the fastest growth since Q1 1981.

USD/JPY extends pullback from YTD top

Following the data, USD/JPY refreshed intraday low to 145.37, around 145.45 by the press time, while extending the late Monday’s U-turn from the highest level since November 2022, as well as probing the five-day uptrend.

Also read: USD/JPY closed above 145.00 ahead of Japanese GDP data

About Japan GDP

The Gross Domestic Product released by the Cabinet Office shows the monetary value of all the goods, services and structures produced in Japan within a given period of time. GDP is a gross measure of market activity because it indicates the pace at which the Japanese economy is growing or decreasing. A high reading or a better-than-expected number is seen as positive for the JPY, while a low reading is negative.