TOKYO, Feb. 17 (Xinhua) -- Japan's economy shrank an annualized real 6.3 percent in the October-December quarter, the government said in a report on Monday.

File photo: VCG

The Cabinet Office said the contraction in inflation-adjusted gross domestic product for the three-month period equates to a 1.6 percent decrease from the previous quarter.

The latest figure marks the first contraction in five quarters and the sharpest decline since a 7.4 percent fall logged in the April-June period of 2014.

The Cabinet Office's preliminary figures compare to median analysts forecasts of a 3.7 percent contraction in the reporting period, with the previous outlook coming on the heels of an annualized real 1.8 percent expansion logged in the July-September period.

The decline followed a consumption tax hike in October from 8 to 10 percent, with economists believing that private and business consumption were dialed back more than previously expected, with a key indicator being the 7.4 percent drop logged in 2014, which was triggered by the previous tax hike here from 5 to 8 percent, they highlighted.