Daily Management Review

Japanese companies show strongest profit decline since 2009


Japanese corporations and companies showed the most powerful decline in revenue since 2009 in the first quarter of this year due to the situation with the novel coronavirus, when the country's economy suffered serious losses due to the global financial crisis. This is evidenced by data published on Monday by the Ministry of Finance of Japan.

The income of Japanese corporations in the first quarter of this year decreased by 32% to 15.15 trillion yen (about $ 140 billion at the current rate). In 2009, the profit of Japanese companies fell 32.4%. 

It is also worth noting that the profit of Japanese corporations has been declining for the fourth quarter in a row. 

The largest drop was demonstrated by equipment suppliers for transport companies, as well as corporations from the service sector, in particular from the hotel sector.

The outbreak caused by the new coronavirus disease was recorded at the end of 2019 in Central China and subsequently spread to most countries. On March 11, the World Health Organization recognized it as a pandemic. 

source: asia.nikkei.com