TOKYO–Japan’s economy contracted an annualized 2.2% in the January-March quarter, government data showed Monday, confirming a recession due to the impact of the coronavirus pandemic.
The revised figure was less than the 3.4% contraction in a preliminary estimate from the Cabinet Office in May. Two straight quarters of contraction is one definition of a recession.
The revised data showed that private consumption declined 0.8% from the previous quarter, compared with an initial estimate of a 0.7% fall.
Meanwhile, capital investment rose 1.9%, stronger than the initial estimate of a 0.5% decrease.
Economists say the upward revision to capital expenditure may not accurately reflect the impact of the pandemic because many companies didn’t submit their plans by the deadline.
Those who were unable to reply are likely to be affected more seriously by the virus, they say.
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