TOKYO (Reuters) - Japan's economy shrank slightly in the final quarter of 2010 but analysts expect a recovery this year as stronger exports to China and other parts of fast-growing Asia offset persistently weak domestic demand.
The data confirmed Japan lost its place to China last year as the world's second-largest economy and highlighted Tokyo's increasing reliance on its giant neighbor, which buys nearly a fifth of Japan's exports.
Gross domestic product (GDP) shrank 0.3 percent in the October-December period from the previous quarter, slightly less than a 0.5 percent fall expected by markets but still the first contraction in five quarters.
