The new economic data will put the new prime minister, to be elected in a ruling party leadership race on Sept. 14, under pressure to take bolder economic support measures.

The third straight quarter of declines knocked the size of real gross domestic product (GDP) to decade-low levels, wiping out the benefits brought by Prime Minister Shinzo Abe's "Abenomics" stimulus policies deployed in late 2012.

Speculation -- denied by organizers -- is swirling that the global outbreak will scupper Japan's dream of hosting the Tokyo Olympics, an outcome that could become more likely if a state of emergency is declared.