TOKYO, June 8 (Xinhua) -- Japan's economy in the first quarter of this year contracted less than previously expected, revised data from the government showed on Tuesday, owing to increased spending on medical care.
According to the Cabinet Office, in the January-March period the country's real gross domestic product (GDP) shrank 1.0 percent from the previous quarter, or an annualized 3.9 percent.
The latest figure was upgraded from a preliminary 5.1-percent annualized contraction, due to an increase in medical care costs.
"The upward revisions reflect latest statistics showing higher-than-expected medical care costs and the value of public construction work," a government official was quoted by local media as saying.
The country's real GDP, on a seasonally adjusted basis and adjusted for inflation, still decreased for the first time in three quarters, owing to the downside effects of Japan's second coronavirus state of emergency, the office said.
Government spending fell 1.1 percent, revised upwardly from a preliminary 1.8-percent drop, while public investment decreased 0.5 percent, compared to an initial 1.1 percent decline on a quarterly bases, the Cabinet Office's revised data showed.
In addition, the office said that capital expenditure declined 1.2 percent, from an initial 1.4 percent retreat, while private consumption, comprising more than 50 percent of Japan's GDP, fell 1.5 percent, from an initial 1.4-percent decline, reflecting the state of emergency's effect on the services sector.
Exports and imports were both downgraded by 0.1 percentage point to 2.2 percent and 3.9 percent, respectively, the Cabinet Office's data also showed.
The government declared a COVID-19 state of emergency in 11 prefectures across Japan, including Tokyo and its neighboring regions, during the reporting period, with restrictions in place requesting restaurants and bars to close early, people to work from home and refrain from making unnecessary trips outdoors zapping consumption.
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