Tokyo - The Japanese economy shrank in the January-March quarter an an annualized rate of 15.2 per cent, the sharpest annualized drop ever recorded in what remains the world's second- largest economy, the Tokyo government announced Wednesday.

The pace narrowly exceeded the 14.4 per cent annualized rate of contraction in the last three months of 2008.

A steep decline in Japan's exports was the leading cause for the

first-quarter performance.

In absolute terms, the Japanese economy was 4 per cent smaller on March 31 from December 31. (dpa)