Tuesday, September 27, 2022

Japan experiences worst Q2 GDP contraction in 40 years amidst COVID-19

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Tokyo [Japan], Aug 17 : Japan’s economy in April to June period shrank an annualised 27.8 per cent in real terms from the previous quarter, the sharpest contraction in 40 years as COVID-19 pandemic upended the economy, reports said on Monday.

It is the worst result since comparable data became available in 1980, said NHK World, as personal consumption plunged while people stayed at home and businesses closed their doors. In April and May, as economic activity was restricted under a state of emergency during the coronavirus outbreak. Exports also fell as global economic activity froze, resulting in a sharp decline in auto shipments.

Meanwhile, the Japan Times said many analysts have forecast that the nation’s economy will rebound by over 10 per cent in the July to September period from the current quarter, given the gradual resumption of economic activity after the end of virus emergency in late May.

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However, analysts also believe that it will take at least a few years for the economy to bounce back to pre-pandemic level.

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