Japan’s economy was shrinking even before the bulk of US President Donald Trump’s tariff measures took force, leaving the economy at risk of sliding into recession as Prime Minister Shigeru Ishiba heads into an election and the central bank weighs policy.

On an annualized basis, Japan's GDP contracted 0.7% in the first quarter, also more than the 0.2% fall expected by the Reuters poll.

The government has reported that Japan's economy contracted at an annual rate of 0.7% in the first quarter, as U.S. President Donald Trump’s trade war hurt exports and dented consumer confidence