Japan GDP revised upward, still awful

Improvement may be forthcoming

The Japanese government said that GDP in 1Q fell at an annual pace of 14.2%, versus the originally reported drop of 15.2%. The government also said 4Q was revised to -13.5% from -14.4%. Hence, 1Q was the largest drop on record.

Japan's export-dependent economy has been hit very hard by falling demand around the world. Difficulties in the global economy have been compounded by the strong yen, which can make exports more expensive.

Nonetheless, recent indicators are suggesting some stability, and expectations that China's economy is expanding at a modest pace may lend some support to Japan's beleaguered economy.