TOKYO -- Japan's economy shrank 2.2% at an annualized pace in January-March, the government announced on Monday, a milder decline than the preliminary estimate of a 3.4% contraction.
Capital expenditure grew 1.9% at a quarterly pace, a significant upward revision from the preliminary estimate of a 0.5% drop. Investment based on long-term business plans like real estate development has been solid. However, market analysts forecast that capital expenditure will decline in the coming months as it usually follows the trend of corporate profits, which are plummeting.
