Japan's economy grows for 5th straight quarter in April-June
A preliminary report released by the Cabinet Office on Friday showed quarter-on-quarter growth of 0.3 percent in adjusted real gross domestic product. The annualized figure works out to 1.0 percent.
The Cabinet Office also revised upward overall GDP data for the first quarter from an earlier estimate that showed a contraction.
The latest data says private consumption, which accounts for more than half of the country's GDP, grew 0.2 percent from the previous quarter.
Corporate capital investment expanded 1.3 percent, and housing investment rose 0.8 percent.
Observers say exports were up 2.0 percent, despite higher tariffs from the United States coming into effect during the period.
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Japan Times
36 minutes ago
- Japan Times
Winning warship bid gives Japan confidence boost as Tokyo eyes more exports
Japan's successful offer of state-of-the-art warships to Australia is seen as a "model" case for the future export of entire military systems, senior defense officials say, as Tokyo eyes Southeast Asian nations as possible destinations. Australia's decision to select a Japanese warship for its next frigate class has been 'well received across Japanese industry, so we feel this will have positive ramifications and generate momentum as local companies look at the Mogami case as a model," a Defense Ministry official, speaking on condition of anonymity, told The Japan Times. Canberra plans to buy 11 upgraded Mogami-class frigates, choosing Mitsubishi Heavy Industries (MHI) over Germany's Thyssenkrupp Marine Systems as its preferred partner to replace the Australian Navy's aging Anzac-class warships in what is set to be Tokyo's largest-ever defense contract. The decision marked a breakthrough for Japan's defense industry and helped erase memories of Tokyo's failed submarine bid to Australia in 2016. 'We hope this success will give confidence to the broader Japanese industry to explore future transfer opportunities,' the official added, as domestic companies look to overcome their comparative inexperience in delivering on large-capability contracts for customers other than the Self-Defense Forces. This confidence boost could prove critical as Tokyo aims to step up defense-industrial cooperation with allies and key partners, including Southeast Asian nations such as the Philippines, Indonesia and Vietnam. 'Our way of thinking is the same when we look at Australia or at regional partner nations in Southeast Asia,' the official said. 'Our ultimate goal is to create a desirable security environment in this region, and we see equipment transfers as important tools in this endeavor. 'Sharing the same type of assets means we can rely on each other and work more closely together,' the official added. Manila has expressed interest in acquiring used Maritime Self-Defense Force Abukuma-class destroyer escorts in what would be another export of a major naval platform as Japan aims to boost the defense capabilities of like-minded neighbors. Tokyo is set to decommission the first of six Abukuma vessels in 2027. Meanwhile, Jakarta, which has also expressed interest in the upgraded Mogami, is also known to be considering acquiring decommissioned Soryu-class submarines. It is still unclear, however, how Japan will be able to export entire secondhand military platforms under its strict arms export regulations, formally known as the Three Principles on Transfer of Defense Equipment and Technology, or if further revision to the regulations would be required. The Maritime Self-Defense Force's Abukuma-class destroyer escort Chikuma (front) sails with the Australian Navy's Hobart-class guided-missile destroyer Brisbane during joint exercises in the Pacific Ocean in November 2023. | U.S. NAVY The transfer of the upgraded Mogami is only possible under the current guidelines because it fits into the category of 'joint developments and production,' which is normally reserved for new equipment. This still requires National Security Council approval and is determined on a case-by-case basis. Australia's selection of MHI, however, doesn't mean the process is over. 'The decision means we can now concentrate on securing the contract rather than on the competition itself,' the Japanese official said. Much remains to be discussed, officials said, including technology transfers, integrated supply chains, maintenance arrangements and the overall level of Australian participation. 'The Mogami's selection was a wonderful announcement, but there is still a challenging way ahead to get to the contract,' the official added. Canberra aims to enter into binding and commercial contracts with MHI and the Japanese government early next year. The decadelong, 10 billion Australian dollar ($6.48 billion) frigate plan, known as Project Sea 3000, requires the first warship to be delivered by 2029 and become operational the following year. The three initial vessels are to be constructed in Japan, with manufacturing of the remaining ships set to transition to the Henderson area of Perth, where they will be built by Australian company Austal. The first three are likely to be made at MHI's Nagasaki shipyard alongside those already on order for the MSDF. Should additional capacity be required, the Japanese officials said MHI has already transferred Mogami manufacturing technologies to other shipyards, including in Yokohama and Tamano, Okayama Prefecture. Japan's successful bid not only highlights how far its domestic industry has come over the past decade, but also how critical close cooperation with the government has become for companies to succeed on the international defense market. The Mogami bid marked the first time that Japan launched a joint public-private promotion committee exclusively to support a defense export project — an approach that officials say might be considered for similar endeavors in the future. But why did Tokyo step up its involvement? While shaping the regional security environment and deepening security relations are among the reasons why governments export military equipment, such transfers play another key role: they help maintain a sovereign and innovative defense industry, something that Japan has recognized as a matter of national security. The argument is that in the event of a conflict, Japan's defense-industrial capacity must be able to meet a rapid increase in demand, something that can only be done with a robust defense-industrial base. Should Japan lose this capacity, or its ability to develop cutting-edge tech, it could eventually become too dependent on foreign governments and defense industries. Australia's pick of Mitsubishi Heavy Industries as as its preferred partner to replace its navy's aging Anzac-class warships highlights how far Japan's defense industry has come over the past decade, | REUTERS While the upgraded Mogami was deemed the better fit for the Australian Navy based on its capabilities, it's almost certain that elements such as Tokyo and Canberra's growing geostrategic alignment, the need for greater interoperability with regional allies and partners as well as plans to further deepen defense-industrial cooperation also weighed heavily in the decision-making. While not directly related to the warship, these aspects are nonetheless significant in terms of collective defense posturing and strategic messaging, signaling to rivals such as China and North Korea that Tokyo and Canberra will be working together for the foreseeable future. But the government's role was also important in another way, with experts saying that the most persuasive factor in Tokyo's bid was its promises that the first three frigates will be delivered on time. This commitment only became possible after the Japanese government explicitly allowed the joint development and production of the frigates, allaying concerns about restrictions under its arms export controls. 'Compared to 2016, this time around the government and MHI were much more proactive,' said James Schoff, a Japan defense expert at the Sasakawa Peace Foundation USA. 'They understood what was important to the client, in terms of delivery schedule, ship performance, life cycle costs, etc., and they marketed themselves more successfully," he said. Japanese officials also said there was more clarity from an early stage about the Mogami's exportability, something that wasn't the case in 2016, when Japan pitched its Soryu subs to Australia. 'The submarine competition took place not long after the government's 2014 revision of Japan's three defense transfer principles,' a second Japanese official said. 'Back then, our companies weren't really sure about what they were allowed to transfer abroad, and I believe this lack of confidence somehow contributed to us losing that bid.' Once the Mogami contract is signed, the export of these advanced warships to Australia will mark just Japan's second transfer of a complete defense system since 2014, following the sale of several air-surveillance radars to the Philippines in 2020. 'Many companies in Japan are therefore watching this case very closely, not only those directly involved with Mogami frigates, but also those outside the project,' the first Japanese official said. These firms, the official added, want to understand the unprecedented whole-of-government approach Tokyo has taken and how its involvement with industry will continue going forward.
NHK
9 hours ago
- NHK
JICA to recognize 4 Japanese cities as Africa 'hometowns'
Four Japanese cities are set to be recognized as the "hometowns" of African nations, aiming to foster human resources who can serve as bridges between Japan and Africa. The initiative is being launched in conjunction with a Japan-led conference on Africa's development. The Tokyo International Conference on African Development, or TICAD, will take place in Yokohama City for three days from August 20. JICA, the Japan International Cooperation Agency, plans to designate at least four Japanese municipalities as "hometowns" of African countries as part of its initiative to deepen exchanges. So far, Nagai City in Yamagata Prefecture is expected to be named as the hometown of Tanzania; Kisarazu City in Chiba will be the hometown of Nigeria; Sanjo City in Niigata will serve as hometown for Ghana; and Imabari City in Ehime, for Mozambique. Foreign ministry officials say that by the year 2050 the population of Africa is expected to be about a quarter of the world's population, so it is essential for Japan to incorporate the vitality of the continent. The officials add that they hope direct connections between Japanese and African municipalities will lead to the expansion of exchanges.
Japan Times
14 hours ago
- Japan Times
Japan to accelerate development of logistics network in Africa
Prime Minister Shigeru Ishiba will unveil Japan's plan to accelerate the development of the Nacala Corridor, a logistics network in Africa, at the upcoming ninth edition of the Tokyo International Conference on African Development (TICAD), informed sources said. The planned corridor, which will link the inland African country of Zambia and a port in Mozambique in the southeastern part of the continent via Malawi, is aimed at enhancing supply chains for mineral resources. Zambia is a mineral-rich country, and minerals such as copper and cobalt produced there are mainly exported through ports in Angola, western Africa. Using Nacala port in Mozambique, however, is more convenient for exports to Japan. The Japanese government has been developing the Nacala Corridor since 2012. At the three-day event starting Wednesday in Yokohama, Ishiba, who will chair the conference, will pledge Tokyo's support for the three countries hosting the Nacala Corridor by utilizing investment and loan programs of private firms and international organizations, as well as the government's official development assistance program. Specifically, Japan will support the development of water facilities and highways in order to promote industrial growth and increase the value of the areas. Japan is slated to launch a new initiative to strengthen economic ties with India, the Middle East and Africa. The government will support Japanese companies' advances into these regions by helping expand trade and investment through the new economic initiative and the Nacala Corridor. By leveraging the Nacala Corridor, Japan aims to increase its competitiveness with China, which is trying to increase its presence in Africa by providing countries in the continent with subsidies. Establishing solid supply chains for critical minerals is "directly associated with Japan's economic security," a Japanese government official said. "The development of the Nacala Corridor will contribute to the development of Africa and also benefit Japan." U.N. Secretary-General Antonio Guterres is slated to visit Japan in order to attend the conference, where he will underscore TICAD's importance and the potential growth of Africa, a spokesperson said Friday. After attending the conference, Guterres is slated to visit the Osaka Expo.
