Japan Confirms GDP Contraction, Backing BOJ’s Cautious Stance

Japan’s economy contracted in the first quarter, a revised estimate confirmed Monday, weakness that supports the Bank of Japan’s cautious stance and keeps political pressure on Prime Minister Shigeru Ishiba ahead of a key election.

Gross domestic product shrank at an annualized pace of 0.2% in the three months through March, according to the Cabinet Office, a less severe drop than the initial estimate of a 0.7% decline. Economists had expected that initial figure to stand. The improvement was driven by better-than-expected inventory and consumption figures.