Japan’s economy grew by an annualized 3.1% in April-June, surpassing expectations due to a solid rise in consumption, according to data released Thursday. This supports the Bank of Japan’s forecast that a robust economic recovery will help inflation reach its 2% target, justifying further interest rate hikes. GDP growth exceeded the 2.1% forecast, following a revised 2.3% decline in the first quarter. Private consumption, which makes up over half of the economy, rose 1.0%, the first gain in five quarters. Capital spending increased by 0.9%, while external demand slightly reduced growth. The BOJ recently raised interest rates and outlined plans to taper its bond-buying programme.