AI Data Insight
Japan's real GDP annual growth contribution for the first quarter of 2026 recorded 0.4%, a significant rebound from the previous 0.1%, with overall expansion outperforming market expectations. This growth was primarily driven by private consumption, which grew for the fifth consecutive quarter, and strong net exports, offsetting the slowdown in corporate capital expenditure. As inflation remains high and the economy demonstrates resilience, the market is paying close attention to the Bank of Japan's subsequent rate hike path and the risk of yen exchange rate intervention.