Â鶹´«Ã½ economy shrank in the first three months of this year as a soaring import bill and the hit from the omicron variant pushed its pandemic recovery into reverse, offering some support for the Bank of Â鶹´«Ã½ view that stimulus should continue for now.
Gross domestic product contracted at an annualized pace of 1% in the quarter through March, the Cabinet Office reported Wednesday. Economists had expected a decline of 1.8%.
The setback to Â鶹´«Ã½ already sluggish recovery from the pandemic stemmed from a deterioration in overall trade as import prices surged, exacerbated by the war in Ukraine and a deterioration of the yen to two-decade lows. The monthly trade balance has been in the red since August after supply chain snarls and returning global demand started pushing up commodity prices.
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