Japan’s Economy Shrank Slightly in First Quarter

TOKYO—Japan’s economy contracted in the first three months of this year, when restrictions related to a resurgence of Covid-19 infections held back consumer spending.

While economists expect a rebound in the current April-June quarter, the outlook for this year is cloudy because of factors including Russia’s invasion of Ukraine, the rise in energy prices and the weakness of the yen, which is near a 20-year low against the dollar.