Japan economy shrinks for first time in 2 years


Economists has forecast annualized contraction of around 0.2%.

The Japanese economy contracted for the first time in two years in the first quarter of 2018.

"But we need to be mindful of the impact of overseas economic uncertainty and market volatility", he added.

The GDP deflator fell 0.2% on year, defying forecasts for a gain of 0.3% following the flat reading in the previous three months.

Australia will provide Q1 data for wage prices, which are expected to hold steady at 0.6% on quarter and 2.1% on year.

Slower export growth reflected a decline in shipments of mobile phone parts and factory equipment in the quarter, a government official said.

"The economy is not headed for a recession", said Hiroshi Miyazaki, senior economist at Mitsubishi UFJ Morgan Stanley Securities.

That snaps a run of eight quarters of consecutive growth, the longest Japan has achieved since the boom days of the late 1980s.

Japan's economic system shrank at an annualized charge of 0.6 p.c within the quarter by March, as personal funding and public spending declined.

"The economy is unlikely to continue to contract further".

Under Prime Minister Shinzo Abe, the world's third-largest economy has picked up steam through a deflation-fighting stimulus program driven mainly by asset purchases by the central bank that are injecting billions of dollars into the economy each year.