Japan's Economy Grows More Slowly Than Expected

Japan's economy expanded during the April-to-June quarter, but growth came in weaker than economists had expected.

Soft household consumption and weaker investment weighed on economic activity.

The figures underline the difficult environment facing policymakers as Japan attempts to generate sustainable domestic demand while managing inflation and global economic uncertainty.

Why it matters: Japan remains the world's fourth-largest economy and an important component of global manufacturing and financial markets. Weak domestic spending could complicate monetary-policy decisions and Japan's broader economic recovery.

Source: Reuters, 17 August 2026.