The economy expanded a real 1.2 percent in the January-March period compared with the previous quarter, the government said Monday, revising the initially reported growth of 1.3 percent downward due to slower than expected inventory growth and a fall in exports.

Despite the downward revision in the January-March period, the GDP for fiscal 2004 was left as a 1.9 percent expansion, unchanged from the initial report.

If annualized, the increase in gross domestic product translates into an expansion of 4.9 percent, instead of the earlier reported 5.3 percent, the Cabinet Office said.