Japan Economy

East Asia & Pacific · High income · Capital: Tokyo

Updated 17 Oct 2026

GDP Annual Growth Rate in Japan increased to 0.73 percent in Q2 2026 from 0.49 percent in Q1 2026. Inflation Rate in Japan increased to 1.90 percent in Jul 2026 from 1.70 percent in Jun 2026.

GDP Growth
0.7%
▲ +0.2 pp Q2 2026 · OECD
Inflation Rate
1.9%
▲ +0.2 pp Jul 2026 · BIS
Interest Rate
1.25%
▲ +0.25 pp Sep 2026 · BIS
Unemployment
2.5%
▲ +0.1 pp Aug 2026 · OECD

GDP Growth Rate

Real GDP, annual % change. Hatched bars are IMF projections.

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Inflation vs Interest Rate

Monthly data, %. Source: BIS.

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Key Highlights

  • Real GDP grew 0.7% in Q2 2026 (previous year: 0.5%).
  • Consumer price inflation was 1.9% in Jul 2026, compared with 1.7% in the previous period.
  • The central bank policy rate stood at 1.25% at the end of Sep 2026 (previous: 1.00%).
  • The unemployment rate was 2.5% in Aug 2026 (previous: 2.4%).
  • General government debt was 204.8% of GDP in 2025.
  • The IMF projects real GDP growth of 0.7% for 2026 (World Economic Outlook projection).

Main Indicators

IndicatorLastPreviousPeriodTrendSource
GDP Annual Growth Rate0.7%0.5%Q2 2026OECD
Interest Rate1.25%1.00%Sep 2026BIS
Inflation Rate1.9%1.7%Jul 2026BIS
Unemployment Rate2.5%2.4%Aug 2026OECD
Government Debt to GDP204.8%213.6%2025IMF
Balance of Trade-$37.4B-$64.7B2024World Bank
Current Account to GDP4.9%4.6%2025World Bank
GDP$4,435.2B$4,190.0B2025World Bank

GDP

IndicatorLastPreviousPeriodTrendSource
GDP per Capita$35,951$33,7972025World Bank
GDP per Capita PPP$55,422$54,1562025World Bank
Gross National Income$4,715.1B$4,445.0B2025World Bank
GDP from Agriculture1.0%0.8%2024World Bank
GDP from Industry26.8%27.7%2024World Bank
GDP from Manufacturing18.8%19.5%2024World Bank
GDP from Services71.4%70.8%2024World Bank
Gross Fixed Capital Formation27.8%27.8%2024World Bank
Household Consumption to GDP53.1%53.6%2024World Bank
GDP Growth Rate0.36%0.48%Q2 2026OECD

Labour

IndicatorLastPreviousPeriodTrendSource
Youth Unemployment Rate3.9%3.9%2025World Bank
Labour Force Participation Rate63.4%63.3%2025World Bank
Employment Rate61.9%61.7%2025World Bank
Population123.37M123.98M2025World Bank

Prices

IndicatorLastPreviousPeriodTrendSource
GDP Deflator Growth3.4%3.2%2025World Bank
Core Inflation Rate-1.0%-1.0%Jun 2021OECD
Inflation Rate MoM0.10%0.30%Jun 2021OECD
Food Inflation-0.1%-1.3%Jun 2021OECD

Money

IndicatorLastPreviousPeriodTrendSource
Lending Rate0.99%1.04%2017World Bank
Deposit Interest Rate0.32%0.30%2017World Bank
Broad Money Growth0.6%0.1%2025World Bank
Foreign Exchange Reserves$1,371.4B$1,230.7B2025World Bank
Private Debt to GDP173.7%173.4%Q1 2026BIS
Government Bond 10Y Yield3.05%2.94%Sep 2026OECD
Interbank Rate1.56%1.46%Aug 2026OECD

Trade

IndicatorLastPreviousPeriodTrendSource
Current Account$215.8B$193.7B2025World Bank
Exports$921.0B$923.4B2024World Bank
Imports$958.4B$988.2B2024World Bank
Foreign Direct Investment$45.81B$18.87B2025World Bank
Remittances$4.73B$4.65B2025World Bank
Terms of Trade89.686.52024World Bank
Tourist Arrivals4.12M31.88M2020World Bank
Tourism Revenues$11.40B$49.21B2020World Bank

Government

IndicatorLastPreviousPeriodTrendSource
Government Budget-0.7%-1.7%2025IMF
Government Revenues to GDP37.6%36.9%2024IMF
Government Spending to GDP39.1%39.2%2024IMF
Tax Revenue to GDP11.1%11.2%1993World Bank
Military Expenditure1.41%1.29%2025World Bank

Business

IndicatorLastPreviousPeriodTrendSource
Industrial Production3.6%2.5%Jul 2026OECD
Composite Leading Indicator100.35100.32Sep 2026OECD
Business Confidence101.68101.57Sep 2026OECD

Consumer

IndicatorLastPreviousPeriodTrendSource
Retail Sales YoY-1.2%3.5%Jun 2026OECD
Consumer Confidence98.4698.35Sep 2026OECD

Housing

IndicatorLastPreviousPeriodTrendSource
Residential Property Prices5.0%4.3%Q4 2025BIS

Japan economy explained in simple words

Size of the economy

The economy of Japan produced goods and services worth $4,435.2B in 2025, making it the 4th largest of 214 economies with data.

With a population of about 123.4 million, GDP per person is $35,951. The World Bank classifies Japan as a “high income” economy.

Economic growth

Real GDP grew 0.7% in 2026, compared with world growth of 3.5% (IMF).

Over the last 10 years growth averaged 0.6% a year, ranging from -1.0% to 1.9%.

The IMF projects growth of 0.7% in 2026.

Prices and interest rates

Consumer price inflation was 1.9% in Jul 2026 (reference: the Bank of Japan’s 2% target).

The central bank policy rate was 1.25% at the end of Sep 2026.

The difference between the two — the real interest rate — is about -0.65%.

Jobs

The unemployment rate was 2.5% in Aug 2026 (world: 4.8%).

About 63.4% of people aged 15 and over are in the labour force (working or looking for work).

Government finances

General government debt was 204.8% of GDP in 2025, compared with a median of 52.9% across 191 economies.

The government budget balance was -0.7% of GDP (2025) — a deficit, meaning spending exceeded revenue.

Trade and external position

The current account was 4.9% of GDP in 2025 — a surplus with the rest of the world.

Exports of goods and services were $921.0B and imports $958.4B.

Foreign exchange reserves (including gold) stood at $1,371.4B.

Structure of the economy

By sector, value added is split roughly as: services 71.4%, industry 26.8%, agriculture 1.0% of GDP.

How to read this page

The four boxes at the top show the most-watched numbers: GDP growth (how fast the economy is expanding), inflation (how fast prices are rising), the central bank policy rate (the base cost of borrowing) and unemployment (the share of job-seekers without work). The small arrow shows the change from the previous reading.

The tabs group all available indicators by topic — GDP, labour, prices, money, trade, government and housing. Each row shows the latest value, the previous value, the period it refers to, a small trend line and the source. Click any indicator to open its full history, chart, statistics and comparison with other countries.

Monthly and quarterly figures come from national statistics offices and central banks — via the OECD, the Bank for International Settlements (BIS) and, for India, the Ministry of Statistics (MoSPI); annual figures come from the World Bank and the IMF. Different indicators are published at different times, so the periods shown can differ.

Frequently asked questions

What is the GDP growth rate of Japan?
The latest GDP growth rate of Japan is 0.7% (Q2 2026), compared with 0.5% in the previous period. Source: OECD — Organisation for Economic Co-operation and Development.
What is the inflation rate of Japan?
The latest inflation rate of Japan is 1.9% (Jul 2026), compared with 1.7% in the previous period. Source: Bank for International Settlements (BIS).
What is the interest rate of Japan?
The latest interest rate of Japan is 1.25% (Sep 2026), compared with 1.00% in the previous period. Source: Bank for International Settlements (BIS).
What is the unemployment rate of Japan?
The latest unemployment rate of Japan is 2.5% (Aug 2026), compared with 2.4% in the previous period. Source: OECD — Organisation for Economic Co-operation and Development.
What is the government debt to GDP ratio of Japan?
The latest government debt to GDP ratio of Japan is 204.8% (2025), compared with 213.6% in the previous period. Source: IMF — World Economic Outlook.

Data are sourced from official international organisations (IMF, World Bank, BIS) and national authorities, and are shown for educational and informational purposes only. They are not investment advice and no recommendation is made. Figures may be revised by the source; IMF figures for the current and future years are projections. This page was last updated on Saturday, October 17, 2026.