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Japan’s Return to Growth Unlikely to Derail Kuroda Easing Plan

  • Economists forecast GDP will return to level from end of 2019
  • Consumption drove second-quarter growth, but momentum may slow
Haruhiko Kuroda 
Haruhiko Kuroda Photographer: Jun Hirata/Kyodo News/Bloomberg

The world’s third-largest economy is finally set to return to its pre-pandemic size, a result that’s nonetheless unlikely to sway Bank of Japan Governor Haruhiko Kuroda from his commitment to policy easing.

Gross domestic product probably expanded at an annualized 2.7% in the three months through June, economists predicted ahead of data on Monday. The expected moderate recovery from an omicron-impacted first quarter will bring GDP back to its level at the end of 2019.