IS THE BOJ’S SHIFT ENOUGH TO BOOST THE YEN? 1/3

Japan's economy began 2026 under a major structural transition, posting a real GDP growth of +0.5% (+2.1% annualized) for Q1. This expansion highlights a dramatic internal decoupling, as household consumption grew by +0.3% on the back of historic spring wage increases that finally pushed real wage growth back into positive territory. Conversely, business investment (Capex) ground to a screeching halt, collapsing from a +1.3% growth rate in late 2025 to a mere +0.3% in Q1.