Kayıt Tarihi: 13-Kasım-2019
Japan's economy falls into recession as virus takes its
|Gönderen: 04-Temmuz-2020 Saat 14:27 | Kayıtlı IP
Japan has fallen into recession as the financial toll of
the coronavirus continues to escalate.To get more news
kiFX, you can visit wikifx news official website.
¡¡¡¡The world's third biggest economy shrank 3.4% in the
first three months of 2020 compared to a year ago, its
biggest slump since 2015.
¡¡¡¡The coronavirus is wreaking havoc on the global
economy with an estimated cost of up to $8.8tn (¡ê7.1tn).
¡¡¡¡Last week, Germany slipped into recession as more
major economies face the impact of sustained lockdowns.
¡¡¡¡Japan didn't go into full national lockdown but
issued a state of emergency in April severely affecting
supply chains and businesses in the trade-reliant nation.
The 3.4% fall in growth domestic product (GDP) for the
first three months of 2020, follows a 6.4% decline during
the last quarter of 2019, pushing Japan into a technical
¡¡¡¡More financial stimulus to come
¡¡¡¡Consumers have been hit by the dual impact of the
coronavirus and a sales tax hike to 10% from 8% in
¡¡¡¡While Japan has lifted the state of emergency in 39
out of its 47 prefectures, the economic outlook for this
current quarter is equally gloomy.
¡¡¡¡Analysts polled by Reuters expect the country's
economy to shrink 22% during April to June, which would
be its biggest decline on record.
¡¡¡¡The Japanese government has already announced a
record $1 trillion stimulus package, and the Bank of
Japan expanded its stimulus measures for the second
straight month in April.
¡¡¡¡Prime minister Shinzo Abe has pledged a second budget
later this month to fund fresh spending measures to
cushion the economic blow of the pandemic.
How can Japan turn things around£¿
¡¡¡¡Japan faces a unique challenge as its economy has
been stagnant for decades, compared to the more buoyant
economies of rivals the US and China.
¡¡¡¡Japan also relies heavily on exporting its goods and
has little control over consumer demand in other
countries which have been severely impacted by
coronavirus lockdowns. Many of its biggest brands, like
car firms Toyota and Honda, have seen sales slump across
¡¡¡¡Tourism, which has long been a boost to the Japanese
economy, has also been hit hard as the pandemic keeps
foreign visitors away. Japan has had more than 16,000
confirmed coronavirus cases and around 740 deaths.
¡¡¡¡How does it compare to other major economies£¿
¡¡¡¡Things look bleak for the Japanese economy in the
short term, along with other major economies around the
world. But despite being the first of the world's top
three economies to officially fall into recession, the
country actually appears to be doing better, or less
badly, than other major economies.
¡¡¡¡While economists predict Japan's economy will shrink
by 22% this current quarter, they also predict that the
US could contract by more than 25%. The 3.4% decline also
compares favourably to the 4.8% the US suffered in the
first three months of this year.
¡¡¡¡This was the sharpest decline for the US economy, the
world's biggest, since the Great Depression of the 1930s.
¡¡¡¡China, the world's second largest economy, saw
economic growth shrink 6.8% in the first three months of
the year, its first quarterly contraction since records
¡¡¡¡Both of those economies haven't yet been confirmed as
having fallen into a technical recession, which is
defined as two consecutive quarters of negative growth,
but most economists expect them to in the coming months.