Japan's Real GDP Grows 0.5% Quarter-on-Quarter in Q1

Japan's Cabinet Office on May 14 released preliminary data showing the country's real gross domestic product (GDP) for the first quarter of 2026 (January–March) increased 0.5% from the previous quarter. This marks positive growth amid global economic uncertainties.

On an annualized basis, Japan's real GDP in Q1 grew 2.0% year-on-year, exceeding economists' forecasts. The figures are seasonally adjusted and adjusted for inflation.

Key drivers of growth included a slight recovery in personal consumption after a period of decline, an increase in exports driven by strong demand from Asian markets, and steady growth in business investment in equipment.