Japan's economy expanded 0.3% in the second quarter of 2025 from the previous first three months, outpacing forecasts despite tariff headwinds out of the United States.

This was compared to the revised 0.1% growth seen in the first quarter , and was higher than the 0.1% increase expected by economists polled by Reuters.

The GDP beat was mainly attributed to resilience in exports, which added 0.3 percentage points to GDP growth, compared to the 0.8% contraction in the first quarter of the year. Japan's trade deficit narrowed from April to June compared to the first quarter, according to data from the country's trade ministry.

On a year-over-year basis, Japan's GDP expanded 1.2% in the second quarter, falling short of the first quarter's 1.8% growth.

Annualized growth came in at 1%,

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