Last week, the government announced a stimulus package worth $278 billion in hopes of increasing GDP growth by 1.3 percent, Reuters said.
But some banks were skeptical on whether the package would be effective.
"Although the Japanese government has unveiled a fiscal stimulus package this month to invigorate growth, the actual effects could be very limited, given that fresh spending in the package is of similar size as in the previous years," DBS said in a recent note.
Monday's data reinforced hopes for more monetary stimulus. The combination of weak growth, a strong yen and moderating underlying inflation increases the pressure on the Bank of Japan (BOJ) to ease further, according to Capital Economics.
Earlier this month, the central bank pledged to increase purchases of exchange-traded funds (ETFs) but kept interest rates steady at the close of its two-day meeting, confounding expectations for hefty stimulus.
"Inflation expectations remain poorly anchored, and the prospect of a prolonged period of below-target price gains raises the risk that expectations will move further away from the 2 percent inflation target. As such, we still expect the BOJ to announce additional stimulus measures at next month's meeting, though the scale of any further easing may turn out to be disappointing," said Marcel Thieliant, senior Japan economist at Capital Economics, in a note.