Japan's GDP growth will settle after 'great reopening'

Significance

Exports are near all-time highs. Prices have risen solidly for three successive quarters, indicating that Japan's period of deflation and weakly rising prices may be ending.

Impacts

• The second quarter's outstanding performance is a reminder that Japan remains a strong economic actor among the world’s richest countries.
• Growth will further tighten labour markets, push up wages and put pressure on the two-tier system of regular and part-time workers.
• Monthly data suggest inflationary deceleration, which will induce continued caution among Bank of Japan policymakers.