JAPAN’S ECONOMY MISSES SECOND-QUARTER GROWTH EXPECTATION - Trends Journal
Japan’s GDP grew by 1. 1 percent in the year’s second quarter, a full percentage point below a 2. 1-percent expansion in the year’s first quarter and missing analysts’ forecasts of a 2-percent bump.
August 18, 2026August 18, 2026Japan’s GDP grew by 1. 1 percent in the year’s second quarter, a full percentage point below a 2. 1-percent expansion in the year’s first quarter and missing analysts’ forecasts of a 2-percent bump. The second quarter reflected the impact of the Iran War’s energy price spike. The modest growth was driven by exports, which exceeded expectations in all three of the quarter’s months. The weak yen made Japan’s products cheaper abroad, boosting sales. Earlier this month, the Bank of Japan raised its fiscal 2026 growth outlook from 0. 5 percent to 0. 6. “Japan’s economy is expected to continue growing moderately, albeit at a decelerated rate” due to high energy costs, the bank said in a statement. The high cost of energy will be moderated by government subsidies and similar measures. Also, Japan’s electronics industry is heavily involved in the global AI buildout, contributing a measure of economic strength. TREND FORECAST:The Iran War has made a bad Japanese economic situation much worse. Itis estimatedthat Japan imports 97 percent of its oil, and being that they have no pipeline connections, itis deliveredby tankers. Thus, withsome90 percent of their oil coming from the Middle East, with the Strait of Hormuzclosed,energy prices havebeensharply rising and that is putting more downward economic pressure across Japan’s economy. Therefore, the longer the Iran War lasts, and the higher oil prices go, a bad Japanese economic situation will become much worse and the dive into Dragflation; declining economic growth and rising inflation. August 18 2026,Global Economy,Japan