Japan's Economy Grows 2.1% in Q1 as Spending Offsets $110 Oil Shock

7 articles · Updated · WRAL News · May 19

Japan’s real GDP rose 0.5% from the previous quarter in January-March, marking a second straight expansion and translating to a 2.1% annualized pace.
Private consumption and public demand each increased 0.3%, while stronger business spending also lifted growth despite higher energy costs.
That resilience came as Brent crude climbed from about $70 before the Iran war to nearly $110, with disruption in the Strait of Hormuz squeezing supplies and highlighting shortages of naphtha.
Exports rose 1.7% and imports 0.5%; Prime Minister Sanae Takaichi has pledged steps to secure supplies, likely requiring more government spending.
The stronger quarter may reinforce expectations for further Bank of Japan rate hikes as inflation broadens, even though wages still trail price gains.

Can Japan's temporary subsidies save its economy from recession without deepening its massive debt crisis?

Will this global energy shock force Japan to finally accelerate its lagging transition to renewable power?

Is the Iran war merely exposing Japan's deeper vulnerabilities, from energy dependence to its aging society?