WORLD> Asia-Pacific
Japan reports economy shrank 3 percent April-June
(Agencies)
Updated: 2008-09-12 17:22

TOKYO -- Japan said Friday its economy shrank at a 3 percent annual rate in the April-June quarter, in a lowered revision of an already pessimistic reading for the world's second biggest economy.

The Cabinet office reported Friday that Japan's gross domestic product -- a measure of the value of its goods and services -- contracted 0.7 percent in the second quarter from the previous quarter.

That was worse than the 0.6 percent contraction given in a preliminary report released August. For the annual rate, Japan had said the economy contracted 2.4 percent in its earlier report.

Fears about a global downturn have been growing amid soaring prices of gas, steel, food and other goods. Signs of a slowdown in the US, Japan's major trading partner, have added to the looming worries.

Since the "bubble" economy of overspending burst in the 1990s, Japan had been eking out moderate growth for much of the time in recent years.

But these days some Japanese officials are seriously worried about heading into a possible recession because of emerging risks largely outside Japan's control.

The latest data showed revision in several categories from the initial report, including lower domestic demand, private investment, exports and public spending.