Japan's economy grows annualized real 2.1 pct in Q1

Alsharq Tribune-Otaify 

Japan's economy expanded an annualized real 2.1 percent in the first quarter of 2026, driven by growth in consumption and exports, government data showed Tuesday.

Quarter-on-quarter, gross domestic product adjusted for inflation increased 0.5 percent in the January-March period from the previous three months, the Cabinet Office said in its preliminary report.

In the reporting period, private consumption, which accounts for more than half of the economy, increased 0.3 percent from the previous quarter, helped by strong demand for clothing and a boost in spending at restaurants.

Business investment grew 0.3 percent from the previous quarter, the report said.

Exports climbed 1.7 percent from the October-December quarter on a recovery in auto shipments bound for the U.S. market and strong demand for machinery and electrical devices for industrial purposes, while imports rose 0.5 percent, it added.

In nominal terms, January-March GDP increased 0.8 percent from the October-December period, at an annualized rate of 3.4 percent.