Japan’s economy contracted for a third consecutive quarter, reflecting the continued impact of the country’s biggest disaster since the second world war.
Gross domestic product fell 0.3 per cent in the April-June quarter on a seasonally adjusted basis from the previous quarter, due to a sharp drop in net exports following the March 11 earthquake and tsunami. That translated into a 1.3 per cent decline on an annualised basis, according to government figures released on Monday.
The data was better than predicted, thanks to public spending and a rise in inventories, and the economy is likely to expand in the current quarter on the back of more public spending. Economists, however, are sceptical about the strength of the recovery for the rest of the year.