Japan's Economy Contracts Amid Weak Consumption and Declining Investment
Japan's economy has contracted as weak consumption undermines its recovery, with the country's GDP shrinking by an annualized rate of 5.1% in the first quarter of 2021. The decline in consumer spending, which accounts for more than half of Japan's economy, is attributed to the ongoing impact of the COVID-19 pandemic and the government's efforts to contain the virus. This setback poses a challenge to Prime Minister Yoshihide Suga's goal of achieving a strong economic rebound ahead of the Tokyo Olympics.