Japan's Q2 GDP growth rate is lower than expected

Tokyo, August 17 (Xinhua) -- Preliminary statistics released by the Japanese Cabinet Office on the 17th showed that after deducting price changes, Japan's real gross domestic product (GDP) in the second quarter of 2026 increased by 0.3% month on month and 1.1% on an annual basis, far below market expectations.

Data shows that in the second quarter, personal consumption, which accounts for more than half of Japan's total economic output, has basically stagnated. Enterprise equipment investment decreased by 1.2% month on month, private housing investment decreased by 0.5%, and public demand, including government consumption and public investment, decreased by 0.8%; The export of goods and services increased by 0.5% month on month, while imports decreased by 1.5%. The tense situation in the Middle East and the obstruction of passage through the Strait of Hormuz have pushed up fuel and petroleum product prices, causing Japan to significantly reduce crude oil imports at one point.

Chief Economist of Japan's First Institute of Life Economics, Hiroshi Nagahama, stated that Japan's economic performance in the second quarter was not ideal, and even slightly weak. It is worth noting that actual equipment investment has declined for two consecutive quarters, indicating that corporate investment willingness is still insufficient.