DHAKA: Japan's economy shrank in the second quarter of the year, marking a setback for the government's reform policy.

Between April and June, economic growth contracted by 0.4% compared with the first three months of the year, reports BBC.

Lagging exports and sluggish consumer spending were the biggest contributors to the drop in growth.

It is likely to put pressure on Prime Minister Shinzo Abe to revamp his reform programme of monetary and fiscal stimulus to boost growth.

Japan's economy shrank at an annualised pace of 1.6% in the quarter, following a revised expansion of 4.5% in the first quarter, official data showed.

BDST: 1438 HRS, AUG 17, 2015
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