The Japanese economy shrank an annualized real 6.8 percent in the April to June quarter, falling at its fastest pace since the March 2011 disaster, apparently due to the consumption tax hike on April 1, the government said Wednesday.
The growth in the April-June inflation-adjusted gross domestic product corresponds to a 1.7 percent contraction from the previous quarter.
GDP is the total value of goods and services produced domestically.
Consumption, the biggest component accounting for around 60 percent of Japan's GDP, dropped a real 5.0 percent on quarter after the 3-percentage-point consumption tax hike to 8 percent, following a 2.0 percent rise in the January-March period.
Exports fell 0.4 percent, down from a 6.5 percent surgeA transient variation in the current and/or potential at a point in the circuit. in the January-March quarter, due to sluggish shipments of electronics devices.
Imports were down 5.6 percent, down from a 6.4 percent rise in the previous quarter, affected by a fall in energy imports including crude oil.
In nominal terms, unadjusted for price changes, the world's third-largest economy shrank 0.1 percent on quarter.
The GDP deflator, a wider price gauge than the consumer price index, was up 1.7 percent on quarter, compared with a 0.1 percent increase in the previous quarter.
