Japan’s economy shrank more than expected on surging virus

Decline was on the back of a hit in private consumption as a state of emergency to curb the virus kept people at home.

Japan’s economy shrank more than expected in the first quarter as a slow vaccine rollout and new COVID-19 infections hit consumer spending, raising fears of the country heading towards a double-dip recession. The economy shrank an annualised 5.1 percent in the first quarter, more than the forecast 4.6 percent contraction and following an 11.6 percent jump in the previous quarter, government data showed on Tuesday. The decline was mainly due to a 1.4 percent drop in private consumption as state of emergency curbs to combat the pandemic kept residents at home and hit spending for clothing and dining out.