Japan's Q1 GDP shrinks annualized 3.4%

The coronavirus pandemic continues to have a significant economic impact, with Japan's GDP plunging during the January-to-March quarter.

The Cabinet Office says GDP for the period shrank an annualized 3.4 percent from the previous quarter in real terms. It's the second straight contraction.

Personal consumption, which makes up more than half of Japan's GDP, fell by 0.7 percent. People refrained from eating out and tourist activities. Car sales also dropped sharply.

Exports plunged 6 percent as economic activity stagnated globally. Housing investment fell 4.5 percent, while corporate investment was down 0.5 percent.

Analysts are bracing for the economy to take a bigger hit from the pandemic in the April-June quarter.