Japan's economy expanded at an annualized rate of 1.1% in the April-June quarter of 2026, according to Cabinet Office data released Monday, with real GDP rising 0.3% from the first quarter to the second quarter on a seasonally adjusted basis.
Japan's GDP grew at 1.1% annualized rate in April-June quarter
Japan's economy expanded at an annualized rate of 1.1% in the April-June quarter of 2026, according to Cabinet Office data released Monday, with real GDP rising 0.3% from the first quarter to the second quarter on a seasonally adjusted basis.
The annualized growth rate represents what the pace would be if sustained for a full year. The figure was 2.1% in the January-March period, according to the source.
Private spending fell 1.2% in April-June compared to January-March, while exports grew 0.5% over the same period. Government consumption rose 1.6%.
Export growth was driven by global demand for Japanese automobiles and semiconductors. Japan is home to Toyota Motor Corp. and Honda Motor Co., among other major automakers. Demand for computer chips, supported by interest in artificial intelligence, also contributed to export performance, according to the source.
The quarterly growth rate came in below analyst expectations, according to the source. The source attributes part of the economic pressure to the war in Iran, which it says has pushed energy costs higher. Japan imports nearly all of its oil. The Strait of Hormuz, described as a vital transport route for oil from the Persian Gulf to Asia, has been effectively blocked due to the conflict, the source states. Japan has released some oil reserves and is working on alternate supply routes, according to the source.
- The source does not state which analysts were surveyed or what growth rate they had forecast.
- The source does not provide the specific magnitude by which energy costs have risen.
- The source does not state how much oil from Japan's reserves has been released or identify the alternate routes being pursued.
- The source does not identify the parties to 'the war in Iran' or describe its origin or current status.
- The source does not state whether the April-June figures are preliminary or final.
- The source text supplied appears truncated; some material may be missing.
Read the original at Associated Press