Japan's GDP growth slows to 1.8% annualized pace in Q1 as business investment declines

Real gross domestic product expanded at an annualized pace of 1.8% in the first quarter, down from an initial reading of 2.1%, according to the Cabinet Office.

Business investment was downgraded to minus 0.7% quarter on quarter from 0.3% growth previously, as Japan's biggest companies reduced capital spending in the January-March period.

The conflict in Iran escalated toward the end of the first quarter, with oil prices spiking in early March.