FX.co ★ Japan’s External Demand Returns to Growth, Rises 0.3% in Q1 2026

Japan’s GDP external demand component turned positive in the first quarter of 2026, rising 0.3% quarter-over-quarter after stagnating at 0.0% in the fourth quarter of 2025. The latest figures, updated on 18 May 2026, indicate that foreign demand provided a modest boost to overall economic activity after having no net impact in the previous quarter.

The comparison is made on a quarter-over-quarter basis, with the current reading reflecting the change from the fourth quarter of 2025 to the first quarter of 2026. By contrast, the previous figure measured the change from the third to the fourth quarter of 2025. The move from flat external demand to mild growth suggests an improving contribution from trade to Japan’s GDP at the start of 2026, although the increase remains relatively small in absolute terms.