Economics

Japan's First-Quarter Economic Contraction Worse Than Forecast

  • Analysts expect Japan’s expansion to resume in 2nd quarter
  • Reliance on external demand means vulnerability to trade war
Nomura's Kinoshita Says Japan's 1Q GDP Weakness Was Temporary Phenomena
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Japan’s economy has moved past a rough stretch that ended a two-year run of growth, with forecasts pointing to renewed expansion as global demand regains traction.

Gross domestic product shrank 0.6 percent on an annualized basis in the first quarter, according to revised data released on Friday, as a weaker reading of private consumption offset a stronger one for capital investment. That missed the median forecast of economists.