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Japan Q2 GDP 1.1% annualized, misses forecasts
Japan’s economy grew at an annualized 1.1% in the second quarter of 2026, with quarterly GDP up 0.3% as exports pillared growth while domestic demand remained soft. A weak yen helped exporters, but higher oil prices from the Iran conflict and elevated energy costs weighed on imports, with AI and semiconductor demand offering some support and the BOJ signaling only modest continued growth.
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Japan Core Inflation at 1.6% Below Target

Facts from Wikidata (CC0).

Japan’s core inflation rose to about 1.6% in June, still below the Bank of Japan’s 2% target as subsidies cushioned energy costs, while broader price pressures from higher oil and a weak yen persist. With the BOJ signaling possible adjustment only later and inflation readings diverging across measures, analysts expect a cautious stance ahead of upcoming policy decisions.

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Japan has a highly developed market-oriented economy. It is known as an East Asian model for its public investment into strategic sectors. Japan is the fourth-largest economy in the world by nominal GDP and the fifth-largest by purchasing power parity (PPP). It constituted 3.7% of the world's economy on a nominal basis in 2024. A founding member of the G7 and an early member of the OECD, Japan was the first country in Asia to achieve developed country status. In 2024, Japan was the sixth-largest in the world as an importer and eight-largest as an exporter. The country also has the world's fourth-largest consumer market, and consumption accounts for around 53% of GDP.

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