Japan's economy shrank an annualized 3.9% in first quarter - MarketWatch

Japan’s economy shrank at a slower pace than initially estimated in the first quarter of 2021, the government’s revised data showed Tuesday, confirming the first contraction in three quarters.

The world’s third-largest economy after the U.S. and China shrank 3.9% on an annualized basis, which reflects what would happen if the first-quarter pace continued for a full year.

That compared with the 5.1% contraction in a preliminary estimate released in May. The economy shrank 1.0% from the previous quarter.

The revised data showed that capital expenditure fell 1.2% from the previous quarter, compared with an initial estimate of a 1.4% decline. Public investment fell 0.5%, slower than the 1.1% decline initially estimated.

Economists say weakness in the services sector is likely to continue to weigh on the economy in the current April-June quarter as the government’s state of emergency has been extended through June 20.

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Japan's economy shrank an annualized 3.9% in first quarter - MarketWatch
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