DHAKA: Japan’s economy shrank less than previously thought in the last three months of 2015, surprising analysts.

Gross domestic product contracted at an annualized rate of 1.1% for the period, compared with an earlier reading of 1.4%, official figures showed.

Analysts had been widely expecting to see an annualized contraction of 1.5% for the period, reports the BBC.

Japan has been trying to revive its flagging economy, which has struggled with deflation for nearly 20 years.

The annualized figure is the rate at which the economy would have contracted over a full 12 months, had the December quarter been a reflection of the entire year.

Tuesday's revised numbers showed a slightly upward revision for domestic and private demand.

On a quarter-on-quarter basis, the world’s third biggest economy shrank 0.3% compared with an earlier reading of 0.4%, cabinet numbers showed.

The contraction for the three months to December adds to a string of setbacks for the government's economic reform policy.

Prime Minister Shinzo Abe’s plan to revive the economy - dubbed Abenomics - was introduced after his December 2013 election win.

Its aim was to combat deflation, as well as boost demand and investment.

BDST: 1304 HRS, MAR 08, 2016
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