Japan's GDP shrank 0.2% in Q1 on inflation, omicron wave

Economy has contracted in 3 of last 5 quarters; yet to return to pre-COVID level

The outlook for Japan's economy is murky, with global inflation, the pandemic and the war in Ukraine continuing to weigh on consumption at home and exports. © AP

MITSURU OBE, Nikkei Asia chief business news correspondent

May 18, 2022 09:03 JST

Updated on May 18, 2022 12:08 JST

TOKYO -- Japan's economy shrank in the first quarter of 2022, as it continues to swing between growth and contraction.

Accelerating inflation and a surge in cases of the omicron COVID variant in the January to March period contributed to a 0.2% drop in the country's inflation-adjusted gross domestic product from the previous quarter. Data from the Cabinet Office on Wednesday showed the economy shrank at annualized rate of 1.0%.