Japan's Economy Grew Just 1.1% Annualized Last Quarter, Less Than Half of Market Forecasts

According to Donya-e-Eqtesad, citing government data released on Monday, 26 Mordad 1405 (August 17, 2026), Japan's real GDP grew 0.3% quarter on quarter and 1.1% annualized in the second quarter of 2026 (April to June), well below the roughly 2% annual growth economists polled by Reuters had expected. Japan's economy had grown 1.9% annualized in the first quarter.

Per the Japan Times, private consumption was essentially flat and corporate capital investment fell for a second straight quarter. Yoshiki Shinke, chief economist at Dai ichi Life Research Institute, said earlier concerns about the data had centered on higher import prices and supply chain constraints linked to regional tensions surrounding Iran, though some other analysts warned the economic fallout from those tensions could intensify over the summer quarter. The yen was little changed in today's trading, holding near 159 to the dollar.