Skip to Content

Japan’s economy contracts as energy prices soar

AP Business Writer

TOKYO (AP) — Japan’s economy contracted at a worse than expected annual rate of 1% in the last quarter, as rising prices and COVID-19 restrictions sapped spending and investment. The Cabinet Office said Wednesday that Japan’s real gross domestic product, or GDP, fell 0.2% in January-March compared to the previous quarter. Russia’s war in Ukraine has pushed already high energy prices still higher, a big minus for resource-poor Japan. The Japanese yen has weakened, trading at about 130 yen to the dollar, making imports relatively more expensive. Analysts expect the economy to bounce back in the current quarter as COVID-19 precautions are loosened further.  

Article Topic Follows: AP National Business

Jump to comments ↓

Author Profile Photo

The Associated Press


News Channel 3-12 is committed to providing a forum for civil and constructive conversation.

Please keep your comments respectful and relevant. You can review our Community Guidelines by clicking here

If you would like to share a story idea, please submit it here.

Skip to content