Japan GDP shrinks less than initially thought

Resilient economy: People walk along a street in Shibuya, an entertainment district of Tokyo. Revised GDP data released by the Cabinet Office shows Japan's economy shrank an annualised 0.5% in the January-March period. — AP

TOKYO: Japan’s economy shrank slightly less than initially reported in the first quarter, as private consumption remained resilient in the face of resurgent Covid-19 infections and companies rebuilt their stock, offsetting a drop in business spending.

While the slower contraction is welcome news for policymakers hoping the economy will return to growth this quarter, persistent supply chain disruptions remain a risk to economic momentum in April-June.