The Japanese economy shrank in the first quarter of the year when coronavirus restrictions negatively affected consumer spending.
The third largest economy in the world after the US and China shrank 0.2% compared to the previous quarter, compared to the 0.4% contraction expected by economists.
The economy shrank 1% year-on-year, indicating what would happen if the first-quarter rate continued throughout the year.
Japan is having a hard time achieving continuous growth after the pandemic. Unlike the US, China and major European economies, the Japanese economy has not yet recovered to pre-pandemic levels.
In the first quarter, exports increased by 1.1% from the previous quarter.
Economists point out that the pace of export recovery has slowed down due to continuing supply shortages. Imports increased by 3.4% due to the demand for coronavirus vaccines.
Source: Capital
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