Japan’s Economy Shrinking at 4% Annual Rate

Japan says its economy shrank at an annual rate of nearly 4 percent during the first three months of the year, as the country struggles to recover from the March earthquake and tsunami.

Japan’s gross domestic product — the total of all goods and services — fell a little less than 1 percent from January through March. It was the second straight quarterly drop, meaning that Japan technically is in a recession.

The March disasters knocked out production at many Japanese factories and severely disrupted the supply chain so that factories still able to operate could not get parts.

Japanese Prime Minister Naoto Kan says nuclear power still will be a part of Japan’s future. Mr. Kan said Wednesday that nuclear reactors deemed to be safe will be put into use. But he also said Japan must explore renewable energy sources, such as wind and solar power.

The earthquake and tsunami severely damaged the Fukushima nuclear power plant. The disasters knocked out the plant’s cooling system and caused a radiation leak.

Prime Minister Kan also said the government has to rethink how nuclear power is regulated. Critics say regulators need more independence from the nuclear industry.