Japan Q4 GDP shrinks less than expected

Economic contraction: People walk past construction cranes at a shopping district in Tokyo. Japan’s economy shrank an annualised 1.1 in October-December, less than a preliminary estimate of a 1.4 contraction. — Reuters

TOKYO: Japan’s economy contracted less than initially estimated in the final quarter of 2015 but private consumption remained weak, underscoring the challenges facing premier Shinzo Abe in restoring growth amid intensifying overseas headwinds.

While many analysts expect growth to have rebounded modestly in the current quarter, the bleak outlook for global demand has led some to predict another contraction that will push Japan back into technical recession – defined as two straight quarters of shrinking growth.