Epidemic: Record collapse in Japan's economy
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Japan's economy has shrunk the fastest among the coronavirus epidemics. |
Even before the epidemic, Japan was struggling with low
economic growth.
The data released on Monday strongly reminds countries
around the world that they are facing a severe financial crisis.
Photo: Reuters Photo: Reuters After two quarters of
economic contraction, Japan plunged into recession at the end of March.
According to the latest data, the decline in the size of
the economy in the April-June quarter was the largest contraction since the
introduction of comparative statistics in 1980. At the same time, it is
slightly higher than analysts expected.
One of the main reasons for the recession is the sharp
decline in domestic consumption, which accounts for more than half of Japan's
economy. Moreover, the export sector has also collapsed due to the disruption
of world trade due to the epidemic.
The analysis of updated statistics shows that for the third
quarter in a row, negative economic growth in Japan has not been seen since
1955.
A further downturn has put additional pressure on Japan's
economy to deal with the impact of a 10 percent increase in sales taxes
following the disaster of Typhoon Hagibis.
Despite the maximum contraction, many analysts expect
Japan's economic growth to turn around in the coming months.
Prime Minister Shinzo Abe has begun implementing a
comprehensive incentive package to cope with the impact of the epidemic.
Although Japan lifted the state of emergency in May,
there are fears that the rate at which the outbreak is on the rise will hurt business
and household spending again.
Neighboring China, the world's second-largest economy, is
also showing hope. The country's economy grew by 3.2 percent in April-June.
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