Japan's Economy Contracts 15.2% in Q1

Japan's gross domestic product (GDP) suffered a record shrinkage of 15.2 percent in the first three months of 2009 due to sluggish external and domestic demand amid the global recession, the Cabinet Office said in a preliminary report Wednesday.

It was the steepest fall in Japan's economy since record began more than five decades ago, said the office, adding that the economy declined for four quarters in a row for the first time in history.

On a quarter-on-quarter basis, the nation's GDP contracted 4.0 percent from the previous three-month period.

Meanwhile, corporate capital spending fell at a record pace of 10.4 percent in real terms as many Japanese companies attempted to minimize their losses rather than seize future business opportunities.

In fiscal 2008 ending March 31, GDP saw the first yearly decline in seven years, down by a record 3.5 percent in real terms.

GDP is the total market value of the goods and services produced domestically during a specific period of time. Real GDP figures are adjusted for changes in the value of money or assessed by purchasing power.