Japan''s economy shrinks annualized 1.3% in Q2

Japan''s economy shrank at an annualized rate of 1.3% in the three months through June amid the effects of the March earthquake and tsunami, which significantly slowed the nation''s production and exports, the government said Monday. The economy, as measured by real gross domestic product, contracted for the third straight quarter, which by definition indicates that the world''s third-biggest economy has fallen into a recession. But officials and private-sector analysts said the result does not warrant too pessimistic a view, as the fall was much smaller than expected, Japan''s news agency (Kyodo) reported. The annualized GDP showed a slowing pace of decline, compared with a downwardly revised 3.6% fall in the previous quarter and 2.5% slide in the October-December period. It corresponded to a 0.3% fall from the first quarter, the Cabinet Office said in a preliminary report.