KONTAN.CO.ID - TOKYO. Japan's economy shrank slightly less than initially reported in the first quarter, as private consumption remained resilient in the face of resurgent COVID-19 infections, offsetting a drop in capital spending.
The slower contraction is welcome news for policymakers worried about the world's third-largest economy's recovery this quarter amid pressures from higher energy and raw material prices, a weak yen and persistent supply disruptions.
Revised gross domestic product (GDP) data released by the Cabinet Office on Wednesday showed Japan's economy shrank an annualised 0.5% in January-March. That was a smaller drop than the preliminary reading of a 1.0% fall released last month.