AI Data Insight
The year-over-year contribution of private residential investment to Japan's real GDP in the first quarter of 2026 was -0.1%, showing a marginal improvement from -0.2% in the previous quarter. Despite sluggish capital expenditure, the economy still delivered a 0.5% quarter-over-quarter growth in the first quarter, benefiting from robust private consumption and external demand. However, the energy inflation driven by geopolitical conflicts in the Middle East may pose significant challenges to subsequent rigid demand and central bank policymaking.