PUBLISHED March 27, 2026
Japan Struggles with Weak Growth and Lack of Momentum
According to the economic outlook published by Dai-ichi Life Research Institute, Japan’s economy remains in a low-growth phase, with no clear driving force behind expansion. Although GDP returned to positive territory, the recovery was weak and largely dependent on a rebound in housing investment. Without this factor, economic performance would have remained negative, highlighting the fragile nature of the recovery.
Domestic Demand Remains Under Pressure
Key components of domestic demand, including private consumption and business investment, showed only limited growth. Inflation continues to weigh on household purchasing power, restricting stronger consumption. At the same time, exports declined slightly, reinforcing the absence of a clear growth engine in the Japanese economy.
United States Maintains Growth Despite Rising Uncertainty
The US economy remains relatively resilient, even as uncertainty increases due to trade policies and geopolitical factors. While the labour market shows some signs of softening, employment levels remain solid. Strong investment—particularly in areas such as advanced technologies—continues to support overall economic activity.
Fiscal measures, including tax cuts, are expected to support future growth in the United States. These policies are likely to boost both consumption and investment, potentially offsetting the negative effects of tariffs. As a result, the US economy is expected to maintain steady expansion in the coming period.
Fiscal measures, including tax cuts, are expected to support future growth in the United States. These policies are likely to boost both consumption and investment, potentially offsetting the negative effects of tariffs. As a result, the US economy is expected to maintain steady expansion in the coming period.
The euro area is showing signs of recovery, supported by stronger performance in southern European economies and easing inflation. In addition, increased government spending—particularly in defence and infrastructure—is expected to play a key role in sustaining growth. This shift toward fiscal expansion marks an important change in the region’s economic dynamics.
China’s economy continues to grow, but in an unbalanced way, with strong exports and weak domestic demand. At the same time, emerging Asian economies face increasing uncertainty due to shifting trade dynamics and rising competition. The combination of structural challenges and external risks suggests that the region may experience a more complex growth path.
Overall, the global economy is expected to continue expanding, but without strong or uniform momentum. Growth is increasingly driven by policy measures and external demand, which may lead to a more fragmented global landscape. Regions are likely to develop at different speeds, reflecting their unique structural conditions and exposure to global risks.
The euro area is showing signs of recovery, supported by stronger performance in southern European economies and easing inflation. In addition, increased government spending—particularly in defence and infrastructure—is expected to play a key role in sustaining growth. This shift toward fiscal expansion marks an important change in the region’s economic dynamics.
China’s economy continues to grow, but in an unbalanced way, with strong exports and weak domestic demand. At the same time, emerging Asian economies face increasing uncertainty due to shifting trade dynamics and rising competition. The combination of structural challenges and external risks suggests that the region may experience a more complex growth path.
Overall, the global economy is expected to continue expanding, but without strong or uniform momentum. Growth is increasingly driven by policy measures and external demand, which may lead to a more fragmented global landscape. Regions are likely to develop at different speeds, reflecting their unique structural conditions and exposure to global risks.
