TOKYO: The Japanese economy eked out modest growth in the second quarter despite the impact of the Iran war, official data showed Monday, but the reading fell short of market expectations.
Gross domestic product (GDP) grew 0.3% between April and June, according to seasonally adjusted preliminary data released by the cabinet office.
Economists had expected stronger growth of 0.5%, according to a Bloomberg News survey.
On an annualised basis, GDP expanded 1.%, against market expectations of 2.0%.
The reading will still likely boost expectations that the Bank of Japan (BoJ) will hike interest rates as inflation accelerates in the world number four economy.
A BoJ rate hike could also lift the yen.
The yen has lost ground since the historic recent joint market intervention by the United States and Japan to support the Japanese currency.