Japan's Economic Expansion Nears Postwar Record

The Japanese government is expected to maintain its assessment that the economy is recovering moderately in its June monthly report, keeping the country on track to match the postwar record of 73 consecutive months of economic expansion since June 2020, a source familiar with the matter said, according to Kyodo News.

Japan's economic recovery began after the economy bottomed out in May 2020 during the COVID-19 pandemic.

The government is expected to retain its outlook as gasoline subsidies continue to support household spending despite higher fuel prices linked to the Middle East conflict.

Business investment has also remained firm, driven by growing demand for artificial intelligence-related technologies, the source said.

The June assessment would match the previous postwar expansion record set between February 2002 and February 2008.

The reported agreement between the United States and Iran to end months of conflict is also expected to support Japan's economy by easing energy-market concerns, increasing the likelihood that the current expansion will surpass the postwar record in July.

The government is scheduled to release its June economic assessment on Monday, based on economic data collected through April.

Japan's economic recovery began after the economy bottomed out in May 2020 during the COVID-19 pandemic.