AI Data Insight
The contribution of private inventory to Japan's real GDP in the first quarter of 2026 rebounded slightly to -0.1%. Compared to the previous value of -0.2%, the extent of the economic drag has narrowed. Although inventory destocking is still ongoing, the overall Japanese economy remains resilient, benefiting from the strong performance of domestic consumption and net exports. Analytical institutions expect that as geopolitical uncertainties rise, companies may turn to precautionary inventory restocking in the coming quarters.