AI Data Insight
Japan's real GDP for the first quarter of 2026 grew by 0.5% quarter-on-quarter, accelerating significantly from 0.1% in the previous quarter and beating the market consensus of 0.3%. The recovery in private consumption and robust automobile exports served as the main pillars of support. Despite a contraction in corporate capital expenditure, overall growth momentum remained solid. Bolstered by both wage growth and economic expansion, the market is increasing its expectations for subsequent interest rate hikes by the Bank of Japan.