Japan’s economy notches 1.1% growth rate as spending dips 1.2% and PM sinks in polling

Japan’s economy grew an annual rate of 1.1% in the April-June quarter even as private consumption stayed flat and the growth of exports declined, according to government data released Monday.

Japan ’s real GDP, or gross domestic product, the sum value of nation’s goods and services, grew at a seasonally adjusted rate of 0.3% from the first quarter to second quarter of this 2026, according to Cabinet Office data.

The annualized rate shows what the growth rate would have been if it had continued for a whole year.

It was 2.1% in the January-March period .

Private spending dipped 1.2% in April-June compared to January-March, while exports grew 0.5%.

Exports for the latest period were driven by the global demand for Japanese autos and semiconductors.

Japan is home for Toyota Motor Corp. , Honda Motor Co. and other top automakers.

Global demand for computer chips being powered by interest in AI , helping to support Japan’s exports.

Government consumption rose 1.6%.

Quarterly GDP growth was lower than what analysts had expected.

The Japanese economy has been hurt by the war in Iran , which has sent energy costs surging.

That’s especially difficult for resource-poor Japan, which imports almost all its oil.

The Strait of Hormuz, a vital transport route for oil exports from the Persian Gulf to Asia, has been effectively blocked due to the war, pushing prices higher.

Japan has released some oil reserves and is working on alternate routes.