Japan’s economy gained momentum at the start of 2026, with annualized GDP growth rising to 1.8% in the first quarter, up from 1.3% in the fourth quarter of 2025. The latest figures, updated on 7 June 2026, indicate a modest but clear strengthening in economic activity on a quarter-over-quarter annualized basis.
The “actual” 1.8% reading reflects how output in the first quarter of 2026 compares with the previous quarter, while the earlier 1.3% figure captured the change in the fourth quarter of 2025 against the third quarter of that year. The acceleration suggests that Japan has managed to improve its growth trajectory, reinforcing expectations of a gradually firmer recovery as 2026 progresses.
