Japan’s economy grew less than expected in Q2 2026, with annualized GDP at 1.1% versus a 2.0% forecast.
Japan’s economy expanded 0.3% quarter-on-quarter in Q2 2026, below the 0.5% growth anticipated by markets. The preliminary data marked a slowdown from the 0.5% rise in Q1 2026.
Annualized GDP growth reached 1.1%, falling short of the 2.0% consensus and down from 1.8% in the previous quarter. The weaker-than-expected figures reflect subdued domestic demand and external pressures.
The data may influence the Bank of Japan’s policy outlook, as slower growth could delay further monetary tightening.