Corona-crisis: Japan's economy shrinks at record pace

As a result of the Coronavirus pandemic, the Japanese economy shrunk in the second quarter of the year since decades. According to the government, the real gros

Corona-crisis: Japan's economy shrinks at record pace

As a result of the Coronavirus pandemic, the Japanese economy shrunk in the second quarter of the year since decades. According to the government, the real gross domestic product decreased in the third largest economy in the world by 7.8 percent compared to the previous quarter. Crucial a strong reluctance of private consumers and a drastic decline of export of goods and services by 18.5 percent compared to the previous quarter. This shows that the country is independent of all the domestic measures adopted restrictions against the Virus was also hit by the cyclical downturns in other Parts of the world.

Patrick Welter

a correspondent for Economics and policy in Japan, based in Tokyo.

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economists in Tokyo expect that starting in July, the quarter of a moderate recovery, but will not make the decline in Growth rates of the past few months betting. On the economic Outlook for a possible further worsening of the infection events in Japan and in the world, as a large risk. Since July, the number of registered new infections has accelerated in Japan drastically to last approximately 56,000 cases tripled. Contributes as a reason that Japan has been testing, in the meantime, more and more people to the Virus than in the first months of the pandemic. With 1099 Virus-dead the number of victims is low, however, with a rising tendency. Consumers ' fears of infection could hinder a recovery of consumption, warn of economic researchers in Japan. The government is not afraid of new restrictions on the economic activity, in order to tighten since the autumn of ongoing recession.

In international comparison, it is Japan is good

Japan was already gone with a shrinking domestic gross product in the virus crisis, after the government had raised in October, the value-added tax of 8 percent to 10 percent. According to the preliminary data on economic development, which will be revised in Japan, often significantly, the pandemic in the country economically is now almost twice as strong as during the global financial crisis of 2008/09. Comparable series of data show that the Japanese economic output has shrunk since 1980, never been in a quarter as strong as the last.

Updated Date: 17 August 2020, 01:19

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