Japan’s economy shrank at an annualized rate of 5.1 percent in the first quarter of 2021, worse than market forecasts of a 4.6 percent contraction and following a downwardly revised 11.6 percent growth in the previous period, a preliminary estimate showed. Private consumption, which accounts for more than half of Japan’s GDP, declined 5.4 percent, after a 9 percent rise in Q4. Also, government consumption fell 6.9 percent, compared to a 7.3 percent advance.
The Japanese economy shrank 1.3% on quarter in Q1 2021, compared with market estimates of a 1.2% fall and after a 2.8% growth in the previous period, a preliminary reading showed. This was the first contraction since Q2 2020, amid a resurgence of COVID-19 cases and slow vaccine rollouts.
