Japan: Economy grows at a rate of 1.1% during the first quarter of 2026

Government data released on Monday showed that Japan’s economy grew by 1.1% annually in the first quarter of the current fiscal year, ending on June 30, despite continued stagnation in private consumption and a decline in the export growth rate.

According to data released by the Japanese government, the economy expanded by 0.3% compared to the last quarter of the previous fiscal year, which ended on March 31.

At the same time, private spending in Japan fell by 1.21% in the first quarter of the fiscal year compared to the previous quarter, while exports increased by only 0.5%.

The growth in exports during the first three months of the current fiscal year was supported by global demand for Japanese cars and semiconductors, as Japan is home to some of the world’s most renowned automotive companies, such as Toyota Motor Corp and Honda Motor Corp.

Global demand for computer chips, driven by growing interest in artificial intelligence, also helped bolster Japanese exports.

The quarterly growth rate of the Japanese economy fell short of analysts’ expectations, as the economy was adversely affected by the repercussions of the US-Iranian war that began on February 28, which led to a sharp rise in energy prices and severely impacted Japan, a country poor in domestic energy resources.