Tokyo — Japan’s economy contracted more than expected at the start of this year, suggesting growth has peaked after the best run of expansion in decades. That is unwelcome news for a government struggling to get traction for its reflationary policies. Japan’s economy, the world’s third largest, shrank by 0.6% on an annualised basis, a much more severe contraction than the median estimate for an annualised 0.2% decline. The contraction, which was driven by a decline in investment and consumption and weaker exports, comes as corporate Japan worries about the possible effect of US President Donald Trump’s protectionist policies on global trade. Economy Minister Toshimitsu Motegi said there was no change to the government’s view that the economy was recovering moderately, predicting a resumption in growth to be driven mainly by private consumption and capital expenditure. "But we need to be mindful of the impact of overseas economic uncertainty and market volatility," he said. External ...
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