Japan's Q1 GDP Growth May Rise to 0.4%, Moody's Analytics Reports

Japan's first-quarter GDP data is set to be released on Tuesday. According to Jin10, Moody's Analytics noted in a report that Japan's economy might see a quarter-on-quarter growth rate increase from 0.3% to 0.4% in the first quarter of this year, driven by a moderate recovery in domestic demand and net exports. However, the report also highlighted that ongoing Middle East conflicts could cast a shadow over Japan's economic outlook, potentially leading to minimal growth for the remainder of the year. Rising commodity prices are expected to push inflation higher in the second quarter, which may suppress consumer and business spending and increase Japan's nominal import bill.