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Japan's economy shrinks, raising fear of double-dip recession

Gross domestic product contracted an annualized 5.1% from the previous quarter, ending six months of double-digit growth, as businesses cut investment, government outlays fell

Japan
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The worse than expected result leaves the economy in a vulnerable position this quarter, as PM Suga’s administration struggles to find the balance in virus containment that attempts to limit damage to the economy and keep the staging of the Olympics

Yuko Takeo and Toru Fujioka | Bloomberg
Japan’s economy shrank more than expected during the first three months of the year, raising the possibility of a double-dip recession as the country struggles to contain infections and speed up its vaccine rollout.

Gross domestic product contracted an annualized 5.1% from the previous quarter, ending six months of double-digit growth, as businesses cut investment, shoppers held back spending and government outlays fell amid a suspension of a travel-promotion campaign to help the ailing tourism industry.

Economists had forecast an overall contraction of 4.5%.

The worse-than-expected result leaves the economy in a vulnerable position this quarter, as Prime Minister Yoshihide

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First Published: May 18 2021 | 10:35 AM IST

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