Japan's economy shrinks 15%, steepest decline in 54 years

Japan's economy contracted at the fastest pace since 1955 as exports plunged and companies slashed production, the government said Wednesday.

Japan's real gross domestic product the total value of the nation's goods and services shrank at an annual pace of 15.2 per cent in the January-March period.

The result represents the steepest year-over-year decline since Japan began compiling GDP statistics more than five decades ago. It also marks the fourth straight quarter of decline after GDP fell 12.1 per cent in the October-December period.

On a quarterly basis, GDP fellfour per cent from the previous three-month period, according to the Cabinet Office's preliminary data.

Japan's first-quarter results were markedly worse than other major economies, outpacing the euro zone's 2.5 per cent quarterly decline and a 1.6 per cent contraction in the U.S.

The world's second-biggest economy relies heavily on the rest of the world to buy its cars and gadgets to drive economic growth.

Like the rest of Asia, it has been pummelled by the unprecedented collapse in global demand triggered last year by the U.S. financial crisis.