Japan Economy Advances at Annualized 1.1% in Q2

2026-08-16 23:59 By Farida Husna 1 min. read

Japan’s economy expanded at an annualized rate of 1.1% in Q2 2026, easing from a marginally revised 1.9% growth in the previous quarter and missing market expectations of 2.0%, a preliminary reading showed.

Private consumption, which accounts for more than half of economic output, made no contribution to GDP amid elevated cost pressures, in contrast to government spending, which picked up due to massive economic support measures.

Meanwhile, the decline in capital spending deepened amid mounting geopolitical tensions.

Net trade contributed positively, as exports increased while imports fell.

Analysts warned that rising import costs and intensifying upstream price pressures could eventually pass through to households, weighing on consumer spending later in the year.

Private consumption is also expected to soften in Q3, following a temporary boost in durable-goods demand, including autos and air conditioners, ahead of policy and regulatory changes in April-June.



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Japan Economy Advances at Annualized 1.1% in Q2
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