Japan’s economy shrank in the first quarter of 2018 for the first time in two years.

The world’s third-largest economy contracted by 0.2% quarter-on-quarter in the January-March period, compared with growth of 0.1% at the end of 2017, The Japan Times reported.

Private consumption and capital expenditure slowed during the January to March quarter, which analysts said dragged down the economy. Private consumption accounts for about 60% of Japan’s economic activity.

However, economists believe the drop would be temporary.

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