Japan economy shrinks 2.1%

TOKYO Japan’s economy contracted during the April-June quarter at an annual rate of 2.1%, worse than the initial estimate, the government said today, underlining the damage from the March earthquake disaster.

The world’s third-largest economy has struggled since the March 11 tsunami and earthquake, which left 20,000 people missing or dead, disrupted supply chains among small-business suppliers and forced companies to cut back on power usage.

The government said capital expenditure during the three months through June contracted 0.9% annual rate. The preliminary report had said it had risen 0.2%.