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Japan's economy slowed in the second quarter and missed market forecasts on softer household and business spending, highlighting the fragile nature of its recovery as the Middle East war clouds the outlook. However, long-term bond yields hit a three-decade high as investors brushed aside the soft reading as reflecting one-off factors, and focused more on mounting inflationary risks that could prod the Bank of Japan to raise interest rates next month. Gross domestic product rose 1.1% in annualised terms, government data showed on Monday, missing a median market estimate of 2.0% in a Reuters poll and below a revised 1.9% expansion in the previous quarter. While the data revealed some temporary soft patches in demand, analysts say robust underlying momentum and persistent price pressures are likely to keep the case for imminent interest rate hikes intact. "Today's GDP data was a bit weak but the economy is likely to continue recovering moderately," said Naoki Hattori, chief Japan economist at Mizuho Research Institute. "Given risks of underlying inflation overshooting its target, the BoJ is likely to proceed with a rate hike next month." Sources have told Reuters the BoJ  is set to raise rates as soon as September and is considering hiking more aggressively thereafter to avoid being behind the curve on inflation. The benchmark 10-year Japanese government bond (JGB) yield rose for a sixth straight session on Monday to hit a 30-year high of 2.925%, as investors continued to price in BoJ  rate hikes sooner and faster than earlier expected.Private consumption was the biggest disappointment in the GDP data, falling 0.02% versus market expectations for a 0.5% increase, the first drop in eight quarters.Analysts said the weakness was due in part to lower school fees households paid thanks to subsidies, which pushed down headline private consumption but lifted government spending.Capital spending, a key driver of private demand, fell 1.2% in the second quarter, confounding market forecasts for a 0.4% increase. However, capital expenditure, as well as overall preliminary GDP, tend to be revised higher with updated figures.Exports remained resilient thanks to solid US demand for Japanese hybrid vehicles and sustained global investment in artificial intelligence that supported shipments of semiconductor-related equipment and components.Net external demand, or exports minus imports, added 0.5 percentage point to growth, largely because imports fell sharply after temporary disruptions to crude oil shipments through the Strait of Hormuz."I don't think the BoJ would be too worried about today's GDP data as the economy is showing remarkable resilience to headwinds from the Iran war," said Yoshiki Shinke, senior executive economist at Daiichi Life Research Institute.The government maintained its sanguine view on the economy."The economy remains on a moderate recovery path, with export-driven growth offsetting weakness in domestic demand," Economy Minister Minoru Kiuchi said in a statement.Looking ahead, analysts cautioned that rising import costs and mounting upstream price pressures could eventually feed through to consumers, posing a risk to spending later this year.Aside from rising fuel costs from the Middle East conflict, a weak yen has lifted import prices and broader cost-of-living for households, posing a headache for policymakers. Such price pressures have led to a flurry of hawkish comments from BoJ policymakers that bolstered the case for an early rate hike. The government has sought to cushion the blow to households from rising living costs with subsidies, though rising bond yields may prevent it from ramping up fiscal spending any further, some analysts say. That spells trouble for consumption, which is mostly holding up so far as a tight job market prods firms to offer higher pay. "Government subsidies have helped contain consumer inflation so far, but a weaker yen and higher crude oil import costs raise the likelihood of broader price hikes from the autumn onward," said Takeshi Minami, chief economist at Norinchukin Research Institute.A survey this month by the Japan Center for Economic Research showed 37 economists forecast annualised GDP growth to slow to an average 0.05% in the July-September quarter.

The recently held Business Continuity and Resilience Conference (BCRC) 2025 concluded with key recommendations to strengthen organisational resilience in Qatar, under the theme ‘Business Continuity and Resilience – Smart Solutions and Artificial Intelligence’.Key recommendations of the conference included accelerating the integration of smart solutions and AI into continuity plans; emphasising adaptive, data-driven resilience powered by AI; using AI not only to forecast disruptions, such as cyber threats and supply-chain bottlenecks, but to automate crisis response; enhancing public–private collaboration to unify standards and share expertise; establishing specialised training programmes to improve team readiness; and building secure, resilient digital infrastructure to support sustainable transformation.Engineer Abdulatif Ali al-Yafei, BCRC chairman, sad: “This conference reflects Qatar’s steadfast commitment to fostering a dynamic business ecosystem, one that does not merely face challenges, but transforms them into drivers of innovation, growth, and competitive advantage.“This year’s theme, ‘Business Continuity and Resilience – Smart Solutions and Artificial Intelligence’, embodies our ambitious vision for the future and presents a pivotal opportunity for collective progress.”The event was attended by Hassan bin Sultan al-Ghanem, Assistant Undersecretary for Consumer Affairs at the Ministry of Commerce and Industry, along with CEOs from both the public and private sectors and senior representatives from various entities, underscoring the importance of strengthening institutional readiness to face challenges through the adoption of advanced technological solutions and artificial intelligence (AI).The conference also focused on the transformative role of AI and smart solutions in reshaping resilience strategies. These technologies have become essential tools for risk forecasting, crisis response, and accelerating disaster recovery, enabling Qatari organisations not only to withstand challenges but also to convert them into opportunities for growth and innovation.Al-Yafei said: “We stand at a defining moment in which AI, machine learning, and predictive analytics are revolutionising how institutions handle risks. These technologies empower organisations to move from reactive crisis management to proactive resilience, embracing change as a fundamental opportunity for advancement.”According to al-Yafei, the conference highlighted the critical role of risk management, business continuity, resilience, and crisis management in an era shaped by technological transformation.“We explored how AI and tools ranging from predictive analytics to automated crisis responses are redefining readiness. Modern resilience is no longer reactive: it is intelligent, cognitive, adaptive, and analytics-driven. The event demonstrated how these powerful technologies equip companies to anticipate disruptions, such as cyber threats or supply chain issues, and automate crisis response to ensure faster recovery and a robust, monitored infrastructure,” al-Yafei emphasised.He added: “Through this conference, the BCR Qatar network gathered industry leaders and experts in support of Qatar National Vision 2030. Our mission is to stimulate innovation, promote sustainable growth, and strengthen Qatar’s global position as a resilient, future-ready economy. Together, we explore how to transform challenges into opportunities for innovation, collaboration, and strategic advantage—turning resilience into a critical strategic asset that drives our success.”The conference was highlighted by the National Excellence Awards 2025, which recognised outstanding institutions and individuals contributing to resilience across Qatar. 

The Department of Meteorology forecast that inshore weather until 6:00 pm on Wednesday will be relatively hot to hot daytime with slight dust in places and mild by night. The report warned of expected strong winds during daytime. Offshore, conditions will be fine, with warnings of strong winds and high seas. Inshore winds will be northwesterly at 10 to 20 KT, gusting to 28 KT during the day. Offshore, winds will be northwesterly at 8 to 18 KT, gusting to 23 KT at times. Sea state inshore will range between 2 and 4 ft, rising to 5 ft at times, while offshore will be 3 to 5 ft, rising to 7 ft at times. Visibility inshore will range from 4 to 9 km, while offshore will be between 5–10 km.

The Department of Meteorology forecast that inshore weather until 6:00 pm on Tuesday will be relatively hot to hot daytime, with slight dust in places, and mild by night. The report warned of expected strong winds daytime. Offshore, conditions will be slightly dusty at times, with warnings of strong winds and high seas. Inshore winds will be northwesterly at 10 to 20 KT, gusting to 29 KT during the day, before decreasing to 5 to 15 KT by night. Offshore, winds will be northwesterly at 5 to 20 KT, gusting to 29 KT. Visibility inshore and offshore will range from 4 to 9 km. Sea state inshore will range between 4 and 5 feet, while offshore it will be between 4 and 6 feet, rising to 9 feet at times.

The European Bank for Reconstruction and Development (EBRD) lifted its 2025 growth forecast for the first time in more than a year but warned that the effects of tariffs and war will weigh on growth in 2026. The report, which covers economies in emerging Europe, Central Asia, the Middle East and Africa, raised the 2025 growth outlook slightly to 3.1%, but noted a growing divergence as emerging European countries' growth lagged expansion elsewhere.The 2025 estimate excludes the development bank's newest members — Iraq and six Sub-Saharan African countries, including Nigeria, Kenya and Ghana — but they are included elsewhere in the report for the first time.Rising debt, resurgent inflation, prolonged wars and tariffs were menacing all EBRD economies, EBRD chief economist Beata Javorcik warned.While US imports from those countries had grown in the first half of the year, that was driven by the first quarter, before tariffs hit, she said.

The Department of Meteorology has forecast hot to very hot weather inshore until 6:00 pm on Tuesday, with slight dust in some areas and occasional clouds. Offshore, the weather will be hazy at times with some clouds. Inshore winds will be northwesterly at 6 to 16 KT, gusting to 26 KT, while offshore winds will be northwesterly to northeasterly at 5 to 15 KT, gusting to 20 KT. The sea state inshore will range from 1 to 3 feet, rising to 4 feet, while offshore it will be 2 to 4 feet, rising to 6 feet. Visibility is expected to range from 4 to 90 km inshore and from 4 to 10 km offshore.

The Department of Meteorology has forecast hazy to misty conditions at first, with hot and humid weather inshore during the day on Friday, while offshore conditions are expected to be hazy at times.Inshore winds will be variable at first, becoming mainly northwesterly to northeasterly at 5 to 15 KT, gusting to 20 KT in some areas during the day. Offshore, winds will be mainly northeasterly to northwesterly at 5 to 15 KT, gusting to 18 KT at times.Sea state inshore will range from 1 to 3 feet, rising to 4 feet at times. Offshore, it will range between 2 and 4 feet, rising to 5 feet at times.Visibility inshore is expected to range between 4 and 9 km, dropping to 3 km or less in some areas at first, while offshore visibility will be between 4 and 10 km.