Japan's economy shrinks, fueling fear of recession

Japan's economy shrank for the first time in four quarters during the three months that ended in March, as weak private consumption and a 0.6 percent quarter-on-quarter drop in exports — also the first in a year — dragged the growth down.

The country's seasonally-adjusted real GDP fell 0.2 percent in the first quarter from the previous three months, translating into an annualized decline of 0.7 percent, according to preliminary government data released on Friday. The contraction exceeded the median market forecast of a 0.2 percent annualized decline.

Economists said the first quarter figures highlight the underlying fragility of Japan's economy and warned that the effects of US tariff measures are likely to become more evident in the current quarter.