Japan’s economy shrinks as trade drags

Economic pressure: Petrol prices are seen in Tokyo. The war in Ukraine has sent energy prices soaring with the Japanese yen nose-diving. — AP

TOKYO: Japan’s economy shrank in the first three months of this year as soaring import costs inflated by a weaker yen weighed on trade, and restrictions triggered by the Omicron variant of the coronavirus stunted consumer spending.

Gross domestic product (GDP) contracted at an annualised pace of 1% in the quarter through March, the cabinet office reported. Economists had expected a decline of 1.8%.