The revised gross domestic product (GDP) reading released by the Cabinet Office compared with economists’ median forecast and the initial reading of 1.0% growth.

On a quarter-on-quarter basis, GDP grew 0.5%, compared with a median forecast and the initial estimate of a 0.3% rise.

While the figures show brisk growth in the world’s fourth-largest economy, growing political uncertainty could complicate policymaking in the months ahead after prime minister Shigeru Ishiba resigned on Sunday.

The focus will now turn to July-September GDP figures to gauge how far US tariffs have weighed on the economy.

Tokyo and Washington last week formalised a trade deal, implementing lower tariffs on Japanese automobile imports and other products that were announced in July, providing some relief to the country’s export-heavy economy.

Private consumption, which accounts for more than half of the Japanese economy, inched up 0.4%, versus a 0.2% uptick in the preliminary reading.

The capital expenditure component of GDP, a barometer of private demand, rose 0.6% in the second quarter, revised down from 1.3% in the initial estimate. Economists had estimated a 1.2% rise.

External demand, or exports minus imports, contributed 0.3 percentage points to growth, in line with the preliminary reading. Domestic demand contributed 0.2 percentage points, reversing a 0.1 percentage point drag in the initial figure.