TOKYO (dpa-AFX) – Japan’s economy grew faster than expected at the beginning of the year. In the three months from January to March, the gross domestic product (GDP) increased by 2.1 percent on an annualized basis compared to the previous quarter, as the Japanese government announced on Tuesday in Tokyo based on an initial estimate. This means that economic growth accelerated significantly compared to the previous quarter, despite the Iran war, which has been driving up oil prices since the beginning of March and thus putting a strain on the economy. At the end of 2025, according to revised data, the economy had only grown by 0.8 percent.
Experts had expected an increase in the growth rate in the first quarter, but on average only expected an increase of 1.7 percent. According to experts, the better-than-expected growth gives the Japanese central bank scope for further interest rate increases. The increase in the first quarter was supported by consumption and trade./zb/jkr/stk