The Japanese economy — the world’s third largest — recovered to its pre-pandemic size in the second quarter, as consumer spending picked up following the end of coronavirus curbs on businesses.

Gross domestic product grew at an annualized pace of 2.2% in the second quarter of 2022, coming in below the median estimate of 2.6%, Cabinet Office data showed Monday. That lifted the size of the economy to ¥542.1 trillion ($4.1 trillion), above what it was at the end of 2019. First-quarter GDP was revised to an expansion from a prior contraction.

"The economy managed to return to its pre-pandemic size, but its recovery pace has been slower than other nations,” said economist Takeshi Minami at Norinchukin Research Institute. "I expect growth to continue in the third quarter too, but it will likely be losing momentum down the road.”