"[The revised growth figures are] underwhelming at best. The reality is that the Japanese have not been able to lift inflationary expectations at any degree and they will be held victim to declining commodity prices, which will determine where inflation goes long-term," said Paul Krake, founder of View from the Peak: Macro Strategies.
"For me, both the Bank of Japan and the Abe administration have lost control of policy, while corporate Japan has done a fantastic job of reforming itself, from a policy standpoint, they are not doing well," he said.
Japan's economy slipped into technical recession in the third quarter of 2014 after shrinking 1.9 percent and following a revised 7.1 percent contraction in the second quarter.
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The economy got clobbered when consumers stopped spending following a rise in the nation-wide consumption tax to 8 percent that took effect last April, forcing the government to postpone a second sales tax initially due this October.
"Markets have been preoccupied with a weaker yen, probably due to the old adage that weak yen is good for corporate profit in Japan. That might be true when there is low energy prices because Japan is a net importer of oil. However it fails where Japan most needs support i.e. in domestic demand and consumption, where the depreciation in the exchange rate is most detrimental," Luca Silipo, chief economist for Asia Pacific at Natixis told CNBC.
"So it's no longer true anymore that a weaker yen is unconditionally good for Japan. The data today shows it very clearly," he said.