Japanese economy shrinks in Q1, less than initial estimate

By Tuba Ongun

Japan's gross domestic product (GDP) shrank by 1.8% at an annualized pace in the first quarter of this year, slightly narrower than the initial estimate of a 2% contraction, according to government data on Monday.

The figure followed an upwardly revised 0.4% year-on-year GDP growth in the final quarter of 2023, the Cabinet Office data showed.

Japan's GDP decreased 0.5% quarter-on-quarter in the three months through March, in line with flash data, and switched from 0.1% growth in the previous period.

The slight revision in the GDP was led by capital expenditure, at minus 0.4%, up from the previous minus 0.8%.

Private consumption, a main driver of the Japanese economy, narrowed 0.7% in January-March, matching initial estimates in the face of rising living costs. This was the fourth consecutive quarter of decline.