Japan economy contracts 1.8％ in first quarter

Marks the first decline in two quarters despite an upward revision from the initial estimate

TOKYO: Japan’s economy contracted at an inflation and seasonally adjusted annualised rate of 1.8 per cent in the first quarter of the year, marking the first decline in two quarters despite an upward revision from the initial estimate, according to a revised report from the Cabinet Office released Monday.

The decrease in vehicle production due to test fraud at Daihatsu Motor Co. negatively impacted corporate capital spending, personal consumption, and exports, indicating a stall in the country’s economic recovery. The preliminary report issued last month had shown a two per cent annualised decline in GDP for the January-March period.

Chief Cabinet Secretary Yoshimasa Hayashi stated at a press conference that the government anticipates a moderate improvement in economic output. Additionally, the Ministry of Human Resources and Social Security announced a special campaign for job seekers, including college graduates, which began on June 7.