Japanese media reported the most recent drop was the worst since World War II. But the Cabinet Office mentioned comparable data started in 1980. The earlier worst contraction was in 2009, in the course of the international monetary disaster of 2008-2009.
The world’s third largest economy was already ailing when the virus outbreak struck late final yr. The fallout has since steadily worsened each in COVID-19 instances and social distancing restrictions.
The economy shrank 0.6% within the January-March interval, and contracted 1.8% within the October-December interval final yr, that means that Japan slipped into recession within the first quarter of this yr. Recession is usually outlined as two consecutive quarters of contraction.
Japanese financial development was flat in July-September. Growth was minimal the quarter earlier than that.
For the April-June interval, Japan’s exports dropped at a whopping annual fee of 56%, whereas non-public consumption dipped at an annual fee of almost 29%.
That was with none full shutdown of companies to comprise coronavirus outbreaks, which have worsened prior to now month, pushing the full variety of confirmed instances to over 56,000.
Analysts say the economy is anticipated to get better steadily, as soon as the influence of the pandemic is curbed. Japan’s export-dependent economy depends closely on development in China, the place outbreaks of the novel coronavirus started and have since subsided. But demand has remained subdued.