TOKYO (AP) — Japan’s economy grew at an annual rate of 1.1% in the April-June period, even as consumer spending was flat and export growth slowed, according to government data released Monday.
Japan The country’s real GDP, or gross domestic product (the total value of a country’s goods and services), grew at a seasonally adjusted rate of 0.3% from the first quarter of 2026 to the second quarter of 2026, according to Cabinet Office data.
The annual rate shows the growth rate if it continues for one year. It was 2.1%. January to March period.
Personal spending in the April-June period decreased by 1.2% compared to the January-March period, but exports increased by 0.5%.
export Recent sales were driven by global demand for Japanese cars and semiconductors. Japan is home Toyota Motor Corporation, Honda Motor Co., Ltd. and other top automakers.
Global demand for computer chips is A.I.supporting Japan’s exports.
Government consumption increased by 1.6%.
Quarterly GDP growth was lower than analysts expected. The Japanese economy has suffered the following damage: war in iranhas been sent. energy Costs are rising. This is especially difficult for resource-poor Japan, which imports almost all of its oil.
The Strait of Hormuz, a key route for oil exports from the Persian Gulf to Asia, has been effectively closed due to the war, pushing up prices. Japan has released some of its oil reserves and is working to develop alternative routes.
Brent crude oil has recently been trading at about $88 a barrel, up from about $65 a year ago but down from earlier this year when it was more than $110 a barrel.
The weaker yen also helped some Japanese companies, including export giants like Toyota, boosting the value of overseas earnings converted to yen.
However, the weaker yen raises the cost of importing raw materials, raising prices for consumers and putting pressure on spending.
Japan’s relatively stagnant wage growth has heightened concerns about rising prices.
Prime Minister Sanae Takaichi has promised to put growth back on track, but his public approval ratings, while still higher than some of his predecessors, have been steadily declining.
The U.S. dollar has recently traded near 160 yen, up from about 145 yen a year ago. It was trading around 159 yen after Monday’s economic indicators were released.
The Bank of Japan recently raised its economic growth forecast for the fiscal year ending next March to 0.6% from the previous 0.5%.
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