TOKYO – Japan plunged into recession in the first quarter as the coronavirus pandemic battered manufacturing, exports and spending, and economists expect worse damage lies ahead.
The world's third-largest economy contracted at a 3.4% annual, seasonally adjusted rate in January-March, the Cabinet Office reported Monday.
It shrank 0.9% from the previous quarter. Analysts say things are expected to get worse as Japan endures its biggest challenge since World War II.
The latest data put Japan squarely into a technical recession, defined as two straight quarters of contraction. The economy contracted at a 1.9% annual pace in October-December.