Quake damages Japan economy

Japan’s economy contracted during the April-June quarter at an annual rate of 2.1 per cent, worse than an initial estimate, the government said yesterday, underlining the damage from March’s earthquake.

The world’s third-largest economy has struggled ever since the tsunami and earthquake, which left 20,000 people dead or missing, disrupted supply chains among suppliers in the north-east and forced companies to cut back on power usage.

The government said capital expenditure during the three months through June contracted at a 0.9 per cent annual rate. The preliminary report had said it had risen 0.2 per cent.