![Analysts are predicting Japan's economy to shrink over the April-June period, as supply chain disruptions and power shortages impact production. [AFP]](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_svdjW5AcjgaMY5ikZBW9HaCB24Q_H4jDwGByHliVUnGeLjb98HMBvrzNwHijTmEFP9eGet3iqtATIdP3yTmLfCaAhGjMYr8zpDZtO1mVjOGcRiYNOzktrlbqk=s0-d "Analysts are predicting Japan's economy to shrink over the April-June period, as supply chain disruptions and power shortages impact production. [AFP]")
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Japan's economy has shrunk by almost double the pace expected, due to the impact of the tsunami and nuclear crisis.The disaster-hit nation's gross domestic product fell 0.9 per cent in the March quarter, or 3.7 per cent on an annualised basis.
Economists had been forecasting a decline of 0.5 per cent over the first three months of the year.
This was the second straight quarter of contraction and puts Japan back into recession.
Many analysts are predicting the nation's economy to shrink again over the April-June period, as supply chain disruptions and power shortages impact production.
Senior economist at Deutsche Securities in Tokyo, Seiji Adachi, told Reuters he was concerned about the second quarter.
"Maybe the economy could grow slightly in second quarter, but the problem is the pace of the recovery," he said.
The pace could be very slow and very far away from normalisation."
"I worry about the second quarter, which is the beginning of the new fiscal year [in Japan]. Many companies could revise down their capital expenditure plans."
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