TOKYO—Japan’s economy shrank for the first time in a year and faces a bumpy road ahead due to the impact of U.S. trade policy.Japan’s real gross domestic product declined 0.2% in the January-March period from the previous quarter,

On an annualized basis, Japan's GDP contracted 0.7% in the first quarter, also more than the 0.2% fall expected by the Reuters poll.

Japan's GDP contracted by 0.2% quarter-on-quarter in Q1, marking the country's first economic shrinkage in a year and coming in below forecasts for a 0.1% decline and after a 0.6% growth in Q4, flash data showed.