Japan reported a decline in its annual gross domestic product (GDP) by 0.6 percent for the first quarter of the year 2018 (January-March), as per the data published by its government. On a quarter to quarter basis, its growth was contracted by 0.2 percent.

The drop breaks the country's record of eight consecutive quarter growth, which was its longest since the April-June 1986 to January-March 1989 rise. It was affected by the decline in investments and consumption, as well as low export growth. Overseas economic uncertainty and market volatility also played a role.

The Japanese government expects a resumption in steady growth, driven by private consumption and capital expenditure.

Exports of mobile phone parts and factory equipment were lowered. Experts suggest that US president Donald Trump's tariff on Chinese exports could be a cause as components produced in Japanese were sent to China to produce goods made for export.

Consumer spending also fell owing to its low inflation levels.

As the third largest economy in the world, the country has been facing a shortage in its workforce. A larger portion of its population has aged and the women participation at workplaces has also been low.