Japan¡¯s economy grew at a still-solid pace at the start of the year even after the turbulence in Iran prompted businesses to cut investment.

Real gross domestic product expanded at an annualized pace of 1.8% in the first quarter, down from an initial reading of 2.1%, the Cabinet Office reported on Monday. Business investment was downgraded to minus 0.7% quarter on quarter from 0.3% growth previously.

Economists were predicting a markdown to GDP after a report last week showed Japan¡¯s biggest companies reduced capital spending in the January-March period. The conflict in Iran began to escalate toward the end of that period, with oil prices spiking in early March.