Japan's economy grows 0.5% in Q1 2026 on spending, investment
Business
Japan's economy grew by 0.5% in the first quarter of 2026, edging past forecasts and showing some real resilience despite global uncertainty.
The boost came from people spending more and businesses investing, even as last quarter's growth was revised down to just 0.2%.
Still, it's a reminder that Japan is holding its own for now.
Middle East conflict pushes Japanese prices
Prices are rising faster than expected, thanks to higher energy and food costs driven by conflict in the Middle East.
Since Japan relies on that region for most of its oil, it's feeling the squeeze.
The Bank of Japan has lowered its fiscal 2026 outlook for economic growth to 0.5%, and Prime Minister Sanae Takaichi is prepping an extra budget to help keep things on track if prices keep climbing.