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Japan's Q1 GDP grows 2.1% annualized, beating forecasts amid strong consumption and exports.

Market News
18 May 2026
CNBC
View Source
Neutral
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Japan's economy expanded at an annualized rate of 2.1% in the first quarter of 2026, surpassing analysts' expectations of 1.7%, driven by improved consumer spending and robust exports. On a quarterly basis, growth was 0.5%, also above estimates. However, the Bank of Japan has lowered its full-year growth forecast to 0.5% due to rising crude oil prices from the Middle East conflict, which may hurt corporate profits and household incomes. Inflation is expected to rise, and the government may issue new debt to support the economy amid these challenges.

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