Japan's GDP is expected to grow at an annual rate of 3.1 percent in the second quarter, the survey showed, marking the third straight quarter of expansion, from a 2.7 percent annualized rate in the first quarter. Japan's exports have held up despite slowing global demand. GDP likely expanded 0.8 percent in the second quarter from the previous quarter. Mitsubishi UFJ economist Shinichiro Kobayashi said the data will show that the Japanese economy is recovering moderately, with consumption and capital spending maintaining growth momentum. External demand likely contributed 0.9 percentage point to GDP growth in the second quarter, after constituting a 0.3 percentage point drag in the first quarter, the survey showed. Business capital spending is expected to rise 0.4 percent, compared with a 1.4 percent increase in the previous quarter, and private consumption is expected to rise 0.1 percent, compared with a 0.5 percent increase in the previous quarter. “Consumption has been recovering, mainly in services, as the economy reopens. But the recovery may be weak as inflation weighs on real incomes,” said Ryutaro Kono, chief economist for Japan at BNP Paribas.