Japan’s economy shrinks 1.8%

Tokyo: The Japanese economy shrank at an annual rate of 1.8 per cent in the first quarter of this year, slightly better than the initial estimate at a 2.0 per cent contraction, according to revised government data Monday.

The revision was due to private sector investments, at minus 0.4 per cent, up from the previous minus 0.5 per cent. Seasonally adjusted real gross domestic product, or GDP, a measure of the value of a nation's products and services, remained in negative territory, as exports and consumption declined from the previous quarter. Quarter-to-quarter, the economy slipped 0.5 per cent in the January-March period, according to the Cabinet Office, unchanged from last month's results.

The annual rate measures what would have happened if the quarterly rate lasted a year. Wage growth has been slow, and prices on imports have risen amid a decline in the Japanese yen against the US dollar. The dollar is trading at nearly 157 yen lately, up from about 140 yen a year ago. The weak yen has tourism booming. But it makes imports more expensive, a sore point for a nation that imports almost all its energy. Sluggish consumer spending has also been a drag on the economy.