Japan’s economy contracts, but at smaller rate than thought

By YURI KAGEYAMA
AP Business Writer

TOKYO (AP) — The government says Japan’s economy contracted in the first quarter though at a slower rate than expected. The Cabinet Office said the world’s third-largest economy contracted at a 0.5% annual rate, smaller than the 1.0% contraction in the preliminary estimate for Japan’s real gross domestic product. The latest data found consumer spending and other private demand was not as weak as earlier thought. The upward revision was a pleasant surprise for analysts. They also now expect a second-quarter rebound in the GDP, though surging prices for imported commodities might limit the gains. The expected reopening of the country to tourists as limits imposed to curb COVID-19 infections are lifted, should also boost growth.