The world's third-largest economy shrank 0.2 percent quarter-on-quarter in the January-March period, slightly less than the market expectations of a 0.4 percent contraction.

It followed a modest rebound in the final three months of 2021 that proved short-lived after Japan put COVID-19 restrictions in place as an outbreak fueled by the Omicron coronavirus variant took hold in January.

Growth was also hit by the increasing cost of imports with energy prices surging and the yen falling to its lowest level against the dollar in 20 years.

Economists expect the economy to recover again in the April-June quarter now that virus restrictions have been lifted, but caution there are some caveats.

"We see three headwinds to this expected recovery," said UBS economists Masamichi Adachi and Go Kurihara in a note ahead of the GDP data release.

"First is an increase in food and energy prices. Second is a drag from the lockdown in China," and third was the risk of a potential resurgence in virus infections, they said.

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