Japan's economy shrinks 5.1% as pandemic dries up spending

The Japanese economy has contracted at an annual rate of 5.1% in January-March, slammed by a plunge in spending over the coronavirus pandemic

TOKYO -- The Japanese economy contracted at an annual rate of 5.1% in January-March, slammed by a plunge in spending over the coronavirus pandemic, according to government data released Tuesday. The Cabinet Office’s preliminary seasonally adjusted GDP, or gross domestic product, showed household consumption dropped at an annualized rate of 5.6%, while government spending declined 6.9%. Gross domestic product is the sum value of a nation’s products and services. The annualized rate shows what the rise or drop would have been if that same pace had continued for a year. Much of Japan has been under a state of emergency, centered around early closures of restaurants and bars, to curb the spread of the virus at places where crowds gather.