Japan’s economy grew less than expected in Q2 2026, signaling weaker momentum amid slowing domestic demand.
Japan’s gross domestic product increased by 0.3% quarter-over-quarter in Q2 2026, the Cabinet Office reported. The figure missed economists’ median forecast of 0.5% growth, marking a slowdown from the 0.5% expansion recorded in Q1.
The preliminary data suggests softer consumer spending and business investment, though external trade may have provided some support. Analysts had anticipated a stronger rebound following the prior quarter’s solid performance.
Markets are likely to assess the implications for Bank of Japan policy, with weaker growth potentially delaying further monetary tightening.