Japanese GDP contracted by 3,5% in the first quarter

In the January-March quarter, the Japanese gross domestic product contracted, on an annual basis, by 3,5%, slightly less than the forecasts made by the government (3,7%), but more than estimated in recent days by many economists who they expected a “only” 3% drop. The one announced this morning is the second consecutive quarterly contraction and therefore the country is technically back in recession after exiting it in 2009.
Private consumption also decreased (-0,6%) which represent two thirds of Tokyo's economy and exports contracted by 12,4% in April. Behind the negative data is the earthquake/tsunami/nuclear disaster that struck Japan on 11 March and cost the lives of around 24 people, as well as paralyzing an important part of Japanese industry for days. The data on consumer confidence, which captures the attitude of citizens towards factors such as work and wages, is slightly up. After slipping to its lowest level in two years in April, last month the index rose by just over a point to 34,2, still far from the 50-point threshold beyond which we can speak of optimism.