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.