Japan's economy shows weaker than expected 1.1% growth in second quarter

EconomyApril-June GDP hits below market expectations, marks third straight quarter of expansionInflation in Japan is expected to rise as more companies pass on higher costs to consumers. (Photo by Satoko Kawasaki)AKANE OKUTSUAugust 17, 2026 09:43 JSTTOKYO -- Japan's economy grew 0.3% in the April to June period compared to the first quarter of the year, or at an annualized pace of 1.1%, according to data released on Monday by the Japan Cabinet Office.