Japan's economy shrinks at annual 0.7% pace, less than initially estimated

Japan's economy contracted less than the government's initial estimate last quarter, improving prospects for the recovery from last year's earthquake. Gross domestic product shrank an annualized 0.7 percent in the three months ended Dec. 31, the Cabinet Office said in Tokyo today, compared with a preliminary estimate of a 2.3 percent contraction. The median forecast of 21 economists surveyed by Bloomberg News was for a 0.6 percent contraction. (Bloomberg)