Daily Management Review

Japanese economy experiences unprecedented downturn amid COVID-19


The Japanese economy has suffered an unprecedented recession under the influence of measures against the spread of COVID-19, according to preliminary data from the Japanese government released on Monday.

From April to June this year, when restrictions on people-to-people contacts were in effect in Japan, stifling business activity, real GDP fell -7.8% compared to the previous seasonally adjusted quarter, and on an annualized basis, the decline is estimated at -27 ,8%.

At the same time, negative GDP growth has been observed for the third quarter in a row. The Japanese government considers the current recession to be the biggest since 1955.

On April 7, an emergency regime was introduced in Tokyo and six other prefectures, requiring citizens to stay at home, and then restrictions applied throughout Japan until the end of May. After that, the Japanese authorities gradually began to weaken the measures that hit business activity in the country.

Consumer spending, which accounts for more than half of the Japanese economy, was down 8.2% quarter-on-quarter as few people travel and shop with restaurants amid the emergency.

Exports of goods and services, including income from foreign tourists, decreased by 18.5%, and in annual terms it is 56%.

Minister of Economic Recovery Yasutoshi Nishimura, who is also in charge of measures to combat COVID-19, expressed confidence that the government will take all measures to remedy the situation.

According to Kyodo agency, the Japanese government plans to release its adjusted GDP data for the second quarter of 2020 on September 8.

source: english.kyodonews.net