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Economy

Japan's GDP contracted 2.2% in 1st quarter, revised data shows

Positive capital expenditure trend puts a floor under apparent recession

Japanese consumers began returning to stores in late May, though many now wear masks whenever they go out in public.   © Reuters

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.

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