Japanese economy grows slower than expected

Japan's economy grew at a slower-than-forecast pace in the second quarter amid slowing export growth and subdued domestic demand.

Official figures show that the world's third-largest economy grew by 0.3% in the three months to the end of June, from the previous quarter. Analysts had forecast a 0.6% growth.

Year-on-year, the economy expanded by 1.4%.

But Nicholas Smith from CLSA told the BBC's Asia Business Report that the picture is actually better than it looks.