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Japan's growth drops amid pandemic, worse times likely ahead

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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.

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