Japan’s economic growth surprised many as it surged 2.1% in the initial quarter of 2026, thanks to a rebound in exports and solid private consumption, according to preliminary data released on Tuesday.
The Cabinet Office revealed that the inflation-adjusted gross domestic product (GDP) experienced an annualised growth of 2.1% from January to March. In comparison, the economy also grew 0.5% quarter-on-quarter, following the previous three months.
This marks the second consecutive quarter of growth, surpassing economists’ expectations. Analysts from the Japan Centre for Economic Research had anticipated a 1.56% annualised growth for this quarter.
Private consumption, making up over half of the country's economy, rose by 0.3% in the first quarter. This is the fifth consecutive increase, indicating resilient consumer spending despite ongoing global economic uncertainty.
Exports saw a remarkable recovery, climbing 1.7% from the prior quarter, largely driven by enhanced automobile shipments to the U.S. and significant demand for industrial machinery and electrical equipment abroad.
On the other hand, imports saw a slight rise of 0.5% during this period.
Japan's nominal GDP, which measures economic activity without adjusting for inflation, increased by 0.8% quarter-on-quarter, translating to an annualised increase of 3.4%.
However, despite the positive start to the year, analysts predict a deceleration in growth for the April-June quarter. As per Kyodo News, expectations are set for a 0.45% expansion in the economy during Q2 2026.
A strong smell at a shopping mall in Tokyo triggered a major emergency response with at least 19 pe
Recent missile strikes in Ukraine have escalated regional tensions, prompting urgent calls for inter
A tense exchange between Donald Trump and Xi Jinping during high-level talks has raised questions ab
Indigenous treaty rights and constitutional protections are becoming major obstacles in Alberta’s gr
