AI Data Insight
In the first quarter of 2026, Japan's nominal GDP recorded 169.25 trillion yen, pulling back from the previous quarter due to seasonal factors, but still surging approximately 8.5% compared to the same period last year. Although private consumption and exports performed better than expected, a sharp contraction in corporate capital expenditure dragged the overall real GDP growth down, which was revised lower to an annualized rate of 1.8%. Looking ahead, Middle East geopolitical risks and inflationary pressures triggered by the depreciation of the yen will influence the pace of the Bank of Japan's monetary policy.