Japan economy shrank at the worst scale on record with 27.8% in April-June Quarter as per the Cabinet office report. The contraction is caused due to the COVID-19 pandemic.
The Gross Domestic Product (GDP) of Japan has contracted a record level high since the World War-II. Japan’s economy suffered a set back in 2009 when a global recession took place.
Japan being the third-largest economy in the world, will definitely have an impact on the entire global ecom=nomic situation.
Japan’s economy was experiencing a slow down since January 2020 starting itself. And the Coronavirus pandemic has further worsened the economic growth. Social distancing and lockdown restrictions have weakened the business in Japan. The GDP has drastically got affected due to low production and sales in Japan. Apart from the inside business, Japan exports have also experienced low figures. Total exports dropped by 56% for Japan due to the coronavirus outbreak.
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The private consumption has dropped at an annual rate of 29% approximately. The economic growth was flat between the months of July and September.
Japan’s economy slipped into a recession by 0.6% during January to March period. Earlier the downfall of 1.8% in the economic growth during October to December quarter has added troubles to the existing COVID-19 effect of the economic slowdown. In overall, the GDP fell by 7.8% quarter by quarter. The data was released by the government of Japan on Monday.
Japan’s cabinet office said that the comparables were based on the year 1980 statistics as the records were maintained from then.
In Japan, 56,000 people got affected by the Coronavirus. The government has announced a complete lockdown to contain the pandemic from spreading.
However, the economists and the analysts are in the view that the economy will gradually pull back itself once the pandemic gets an amicable solution to deal with.