Japan's Q1 GDP shrinks annualized 2% on sluggish consumption

Consumption drops for fourth quarter as inflation hits households

20240516 GDP Supermarket

Vegetable section of a supermarket in Tokyo. From January to March, Japan's weak consumer spending pushed down the size of its economy. (Photo by Yutaka Miyaguchi)

AKANE OKUTSU, Nikkei staff writer

TOKYO -- Japan's economy shrank an annualized 2% in the January-March period from the previous three months, according to preliminary government figures released on Thursday, marking the first contraction in two quarters amid sluggish consumption.

The latest real gross domestic product growth rate compares with a median forecast for a 1.5% decline among economists surveyed by QUICK, a Nikkei group company.

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