Japan’s economy grew by just 1 per cent in the first three months of this year, its slowest pace in three years, as strong exports to China and other emerging economies failed to offset weak capital spending.

Net exports contributed 1.4 percentage points to growth from a year ago, while private non-residential investment, or capital spending, contributed a negative 0.4 points, according to data released on Friday. The government said earlier this week it expected machinery orders to decline in the second quarter.