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Economy·Macro Indicators

Japan recession in 2026?

icon for Japan recession in 2026?
Economy·Macro Indicators

Japan recession in 2026?

25% chance
Polymarket
NEW
25% chance
Polymarket
NEW
This market will resolve to “Yes” if Japan’s seasonally adjusted quarter-on-quarter percent change in real GDP (Quarterly Real Growth Rate, Seasonally Adjusted Series, Quarter-to-Quarter), as reported by the Cabinet Office, is less than 0.0 for two consecutive quarters between Q4 2025 and Q4 2026. Otherwise, this market will resolve to “No”. This market includes estimates reported in both the Cabinet Office’s Quarterly Estimates of GDP (First Preliminary Estimates) and Quarterly Estimates of GDP (Second Preliminary Estimates) releases for the relevant quarters. This market’s resolution will be based on the most recently available qualifying estimates for the relevant quarters at the time of each relevant release. Any two consecutive quarters with qualifying negative GDP growth will be sufficient for a “Yes” resolution, regardless of prior or later revisions. For example, if upon release the relevant estimate for Q2 2026 is negative, and Q1 2026’s most recently available qualifying estimate is also negative, this market will resolve to “Yes”. If the relevant estimate for Q2 2026 is negative, and the initial estimate for Q1 2026 was negative, but Q1 2026’s most recently available qualifying estimate at the time of the Q2 release is positive, this will not qualify. This market will resolve as soon as a qualifying recession occurs. If no qualifying recession has occurred and the most recently available qualifying estimates for both Q3 2026 and Q4 2026 are positive at the time of the release of the Quarterly Estimates of GDP (First Preliminary Estimates) for Q4 2026, this market will resolve to “No” at that time. If the most recently available qualifying estimate for either Q3 2026 or Q4 2026 is negative at that time, this market will remain open until the Quarterly Estimates of GDP (Second Preliminary Estimates) for Q4 2026 is published. If that release is not published by April 30, 2027, 11:59 PM ET, this market will resolve based on the available qualifying data at that time. The resolution source for this market will be the Cabinet Office, specifically its Quarterly Estimates of GDP (First Preliminary Estimates) and Quarterly Estimates of GDP (Second Preliminary Estimates) releases for the relevant quarters. Note: January to March will be considered Q1, April to June will be considered Q2, July to September will be considered Q3, and October to December will be considered Q4.Recent positive GDP prints and consensus forecasts of modest expansion underpin the 74.5% market-implied probability against a Japanese recession in 2026. Q1 2026 real GDP rose 0.5% quarter-over-quarter, exceeding expectations and accelerating from Q4 2025, while private consumption and exports showed resilience amid steady wage gains and corporate capex. Leading Economic Index data recovered in April, and forecasters including the OECD, Goldman Sachs, and the Bank of Japan project calendar-year growth of 0.5–0.8%, supported by domestic demand and labor-market tightness. Traders appear to price in only limited downside from elevated energy costs and external risks, viewing a technical recession—two consecutive quarters of contraction—as unlikely given the current trajectory and policy backdrop.

This market will resolve to “Yes” if Japan’s seasonally adjusted quarter-on-quarter percent change in real GDP (Quarterly Real Growth Rate, Seasonally Adjusted Series, Quarter-to-Quarter), as reported by the Cabinet Office, is less than 0.0 for two consecutive quarters between Q4 2025 and Q4 2026. Otherwise, this market will resolve to “No”.

This market includes estimates reported in both the Cabinet Office’s Quarterly Estimates of GDP (First Preliminary Estimates) and Quarterly Estimates of GDP (Second Preliminary Estimates) releases for the relevant quarters.

This market’s resolution will be based on the most recently available qualifying estimates for the relevant quarters at the time of each relevant release. Any two consecutive quarters with qualifying negative GDP growth will be sufficient for a “Yes” resolution, regardless of prior or later revisions.

For example, if upon release the relevant estimate for Q2 2026 is negative, and Q1 2026’s most recently available qualifying estimate is also negative, this market will resolve to “Yes”. If the relevant estimate for Q2 2026 is negative, and the initial estimate for Q1 2026 was negative, but Q1 2026’s most recently available qualifying estimate at the time of the Q2 release is positive, this will not qualify.

This market will resolve as soon as a qualifying recession occurs. If no qualifying recession has occurred and the most recently available qualifying estimates for both Q3 2026 and Q4 2026 are positive at the time of the release of the Quarterly Estimates of GDP (First Preliminary Estimates) for Q4 2026, this market will resolve to “No” at that time. If the most recently available qualifying estimate for either Q3 2026 or Q4 2026 is negative at that time, this market will remain open until the Quarterly Estimates of GDP (Second Preliminary Estimates) for Q4 2026 is published. If that release is not published by April 30, 2027, 11:59 PM ET, this market will resolve based on the available qualifying data at that time.

The resolution source for this market will be the Cabinet Office, specifically its Quarterly Estimates of GDP (First Preliminary Estimates) and Quarterly Estimates of GDP (Second Preliminary Estimates) releases for the relevant quarters.

Note: January to March will be considered Q1, April to June will be considered Q2, July to September will be considered Q3, and October to December will be considered Q4.
Volume
$2,156
End Date
Mar 31, 2027
Market Opened
Apr 23, 2026, 6:17 PM ET

Resolver

0x65070BE91...
This market will resolve to “Yes” if Japan’s seasonally adjusted quarter-on-quarter percent change in real GDP (Quarterly Real Growth Rate, Seasonally Adjusted Series, Quarter-to-Quarter), as reported by the Cabinet Office, is less than 0.0 for two consecutive quarters between Q4 2025 and Q4 2026. Otherwise, this market will resolve to “No”. This market includes estimates reported in both the Cabinet Office’s Quarterly Estimates of GDP (First Preliminary Estimates) and Quarterly Estimates of GDP (Second Preliminary Estimates) releases for the relevant quarters. This market’s resolution will be based on the most recently available qualifying estimates for the relevant quarters at the time of each relevant release. Any two consecutive quarters with qualifying negative GDP growth will be sufficient for a “Yes” resolution, regardless of prior or later revisions. For example, if upon release the relevant estimate for Q2 2026 is negative, and Q1 2026’s most recently available qualifying estimate is also negative, this market will resolve to “Yes”. If the relevant estimate for Q2 2026 is negative, and the initial estimate for Q1 2026 was negative, but Q1 2026’s most recently available qualifying estimate at the time of the Q2 release is positive, this will not qualify. This market will resolve as soon as a qualifying recession occurs. If no qualifying recession has occurred and the most recently available qualifying estimates for both Q3 2026 and Q4 2026 are positive at the time of the release of the Quarterly Estimates of GDP (First Preliminary Estimates) for Q4 2026, this market will resolve to “No” at that time. If the most recently available qualifying estimate for either Q3 2026 or Q4 2026 is negative at that time, this market will remain open until the Quarterly Estimates of GDP (Second Preliminary Estimates) for Q4 2026 is published. If that release is not published by April 30, 2027, 11:59 PM ET, this market will resolve based on the available qualifying data at that time. The resolution source for this market will be the Cabinet Office, specifically its Quarterly Estimates of GDP (First Preliminary Estimates) and Quarterly Estimates of GDP (Second Preliminary Estimates) releases for the relevant quarters. Note: January to March will be considered Q1, April to June will be considered Q2, July to September will be considered Q3, and October to December will be considered Q4.
This market will resolve to “Yes” if Japan’s seasonally adjusted quarter-on-quarter percent change in real GDP (Quarterly Real Growth Rate, Seasonally Adjusted Series, Quarter-to-Quarter), as reported by the Cabinet Office, is less than 0.0 for two consecutive quarters between Q4 2025 and Q4 2026. Otherwise, this market will resolve to “No”. This market includes estimates reported in both the Cabinet Office’s Quarterly Estimates of GDP (First Preliminary Estimates) and Quarterly Estimates of GDP (Second Preliminary Estimates) releases for the relevant quarters. This market’s resolution will be based on the most recently available qualifying estimates for the relevant quarters at the time of each relevant release. Any two consecutive quarters with qualifying negative GDP growth will be sufficient for a “Yes” resolution, regardless of prior or later revisions. For example, if upon release the relevant estimate for Q2 2026 is negative, and Q1 2026’s most recently available qualifying estimate is also negative, this market will resolve to “Yes”. If the relevant estimate for Q2 2026 is negative, and the initial estimate for Q1 2026 was negative, but Q1 2026’s most recently available qualifying estimate at the time of the Q2 release is positive, this will not qualify. This market will resolve as soon as a qualifying recession occurs. If no qualifying recession has occurred and the most recently available qualifying estimates for both Q3 2026 and Q4 2026 are positive at the time of the release of the Quarterly Estimates of GDP (First Preliminary Estimates) for Q4 2026, this market will resolve to “No” at that time. If the most recently available qualifying estimate for either Q3 2026 or Q4 2026 is negative at that time, this market will remain open until the Quarterly Estimates of GDP (Second Preliminary Estimates) for Q4 2026 is published. If that release is not published by April 30, 2027, 11:59 PM ET, this market will resolve based on the available qualifying data at that time. The resolution source for this market will be the Cabinet Office, specifically its Quarterly Estimates of GDP (First Preliminary Estimates) and Quarterly Estimates of GDP (Second Preliminary Estimates) releases for the relevant quarters. Note: January to March will be considered Q1, April to June will be considered Q2, July to September will be considered Q3, and October to December will be considered Q4.Recent positive GDP prints and consensus forecasts of modest expansion underpin the 74.5% market-implied probability against a Japanese recession in 2026. Q1 2026 real GDP rose 0.5% quarter-over-quarter, exceeding expectations and accelerating from Q4 2025, while private consumption and exports showed resilience amid steady wage gains and corporate capex. Leading Economic Index data recovered in April, and forecasters including the OECD, Goldman Sachs, and the Bank of Japan project calendar-year growth of 0.5–0.8%, supported by domestic demand and labor-market tightness. Traders appear to price in only limited downside from elevated energy costs and external risks, viewing a technical recession—two consecutive quarters of contraction—as unlikely given the current trajectory and policy backdrop.

This market will resolve to “Yes” if Japan’s seasonally adjusted quarter-on-quarter percent change in real GDP (Quarterly Real Growth Rate, Seasonally Adjusted Series, Quarter-to-Quarter), as reported by the Cabinet Office, is less than 0.0 for two consecutive quarters between Q4 2025 and Q4 2026. Otherwise, this market will resolve to “No”.

This market includes estimates reported in both the Cabinet Office’s Quarterly Estimates of GDP (First Preliminary Estimates) and Quarterly Estimates of GDP (Second Preliminary Estimates) releases for the relevant quarters.

This market’s resolution will be based on the most recently available qualifying estimates for the relevant quarters at the time of each relevant release. Any two consecutive quarters with qualifying negative GDP growth will be sufficient for a “Yes” resolution, regardless of prior or later revisions.

For example, if upon release the relevant estimate for Q2 2026 is negative, and Q1 2026’s most recently available qualifying estimate is also negative, this market will resolve to “Yes”. If the relevant estimate for Q2 2026 is negative, and the initial estimate for Q1 2026 was negative, but Q1 2026’s most recently available qualifying estimate at the time of the Q2 release is positive, this will not qualify.

This market will resolve as soon as a qualifying recession occurs. If no qualifying recession has occurred and the most recently available qualifying estimates for both Q3 2026 and Q4 2026 are positive at the time of the release of the Quarterly Estimates of GDP (First Preliminary Estimates) for Q4 2026, this market will resolve to “No” at that time. If the most recently available qualifying estimate for either Q3 2026 or Q4 2026 is negative at that time, this market will remain open until the Quarterly Estimates of GDP (Second Preliminary Estimates) for Q4 2026 is published. If that release is not published by April 30, 2027, 11:59 PM ET, this market will resolve based on the available qualifying data at that time.

The resolution source for this market will be the Cabinet Office, specifically its Quarterly Estimates of GDP (First Preliminary Estimates) and Quarterly Estimates of GDP (Second Preliminary Estimates) releases for the relevant quarters.

Note: January to March will be considered Q1, April to June will be considered Q2, July to September will be considered Q3, and October to December will be considered Q4.
Volume
$2,156
End Date
Mar 31, 2027
Market Opened
Apr 23, 2026, 6:17 PM ET

Resolver

0x65070BE91...
This market will resolve to “Yes” if Japan’s seasonally adjusted quarter-on-quarter percent change in real GDP (Quarterly Real Growth Rate, Seasonally Adjusted Series, Quarter-to-Quarter), as reported by the Cabinet Office, is less than 0.0 for two consecutive quarters between Q4 2025 and Q4 2026. Otherwise, this market will resolve to “No”. This market includes estimates reported in both the Cabinet Office’s Quarterly Estimates of GDP (First Preliminary Estimates) and Quarterly Estimates of GDP (Second Preliminary Estimates) releases for the relevant quarters. This market’s resolution will be based on the most recently available qualifying estimates for the relevant quarters at the time of each relevant release. Any two consecutive quarters with qualifying negative GDP growth will be sufficient for a “Yes” resolution, regardless of prior or later revisions. For example, if upon release the relevant estimate for Q2 2026 is negative, and Q1 2026’s most recently available qualifying estimate is also negative, this market will resolve to “Yes”. If the relevant estimate for Q2 2026 is negative, and the initial estimate for Q1 2026 was negative, but Q1 2026’s most recently available qualifying estimate at the time of the Q2 release is positive, this will not qualify. This market will resolve as soon as a qualifying recession occurs. If no qualifying recession has occurred and the most recently available qualifying estimates for both Q3 2026 and Q4 2026 are positive at the time of the release of the Quarterly Estimates of GDP (First Preliminary Estimates) for Q4 2026, this market will resolve to “No” at that time. If the most recently available qualifying estimate for either Q3 2026 or Q4 2026 is negative at that time, this market will remain open until the Quarterly Estimates of GDP (Second Preliminary Estimates) for Q4 2026 is published. If that release is not published by April 30, 2027, 11:59 PM ET, this market will resolve based on the available qualifying data at that time. The resolution source for this market will be the Cabinet Office, specifically its Quarterly Estimates of GDP (First Preliminary Estimates) and Quarterly Estimates of GDP (Second Preliminary Estimates) releases for the relevant quarters. Note: January to March will be considered Q1, April to June will be considered Q2, July to September will be considered Q3, and October to December will be considered Q4.

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Frequently Asked Questions

"Japan recession in 2026?" is a prediction market on Polymarket where traders buy and sell "Yes" or "No" shares based on whether they believe this event will happen. The current crowd-sourced probability is 25% for "Yes." For example, if "Yes" is priced at 25¢, the market collectively assigns a 25% chance that this event will occur. These odds shift continuously as traders react to new developments and information. Shares in the correct outcome are redeemable for $1 each upon market resolution.

"Japan recession in 2026?" is a newly created market on Polymarket, launched on Apr 23, 2026. As an early market, this is your opportunity to be among the first traders to set the odds and establish the market's initial price signals. You can also bookmark this page to track volume and trading activity as the market gains traction over time.

To trade on "Japan recession in 2026?," simply choose whether you believe the answer is "Yes" or "No." Each side has a current price that reflects the market's implied probability. Enter your amount and click "Trade." If you buy "Yes" shares and the outcome resolves as "Yes," each share pays out $1. If it resolves as "No," your "Yes" shares pay $0. You can also sell your shares at any time before resolution if you want to lock in a profit or cut a loss.

The current probability for "Japan recession in 2026?" is 25% for "Yes." This means the Polymarket crowd currently believes there is a 25% chance that this event will occur. These odds update in real-time based on actual trades, providing a continuously updated signal of what the market expects to happen.

The resolution rules for "Japan recession in 2026?" define exactly what needs to happen for each outcome to be declared a winner — including the official data sources used to determine the result. You can review the complete resolution criteria in the "Rules" section on this page above the comments. We recommend reading the rules carefully before trading, as they specify the precise conditions, edge cases, and sources that govern how this market is settled.