Japan has been pushed back into recession by the earthquake and tsunami in March and analysts predict further shrinkage before the recovery.
Official figures for January to March show a year-on-year contraction of 3.7%, worse than expected, the BBC reports.
Japan sank into a recession during the global financial crisis, but had emerged from it in 2009.
But the disaster on 11 March destroyed factories in the north-east, snapping supply chains and disrupting production of cars and other goods.
Consumer spending, which accounts for about 60%, of the economy also shrank.
Nationwide, the Japanese shunned shops and cut back on luxuries out of sympathy for those affected.
Spending on reconstruction means the economy is likely to start to grow again later in the year.
However, ongoing electricity shortages amid the crisis at the crippled Fukushima Daiichi nuclear plant could hinder the recovery.
