Covid-19 : historic fall of Japan's GDP in the 2nd quarter - The Point

Like many countries in the world, Japan has been hit hard by the economic crisis linked to the sars coronavirus. The GDP of the third largest economy in the wor

Covid-19 : historic fall of Japan's GDP in the 2nd quarter - The Point

Like many countries in the world, Japan has been hit hard by the economic crisis linked to the sars coronavirus. The GDP of the third largest economy in the world displays a historic fall in GDP growth in the 2nd quarter. Between April and June, japan's GDP has decreased by 7.8% compared to the previous quarter. This historic fall follows declines in the first quarter (by 0.6 %, 0.9 % announced during a first estimate in may) and in the fourth quarter of 2019 (-1,9 %), which had marked the entry into recession of the country.

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This is the first recession in Japan since 2015, set by a contraction of the national wealth, on at least two consecutive quarters. It is also the sharpest drop in GDP in Japan since comparable data have been put in place in 1980. The consensus of economists surveyed by Bloomberg expected a decline slightly less important in the second quarter (-7,5 %).

A economy which is already in bad

The economy of the Archipelago, already in bad shape since the last quarter of 2019 as a result of an increase of VAT in October, has suffered the impact of the sars coronavirus from the first quarter of 2020. In the second quarter, activity has still suffered more then that a state of emergency was put in place in the country in April and may. The consumption of households has decreased by 8.6 % quarter-on-quarter, and business investment contracted by 0.2 % (land) and 1.5 % (non-land).

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foreign trade has also been in berne, with a contraction of 18.5% in exports and a 0.5% decrease of imports. Public investment, which had declined in the first quarter, however, rising 1.2% in April-June. With about 54 000 reported cases and one thousand deaths related to the disease Covid-19, Japan has been less affected than many countries in europe and the us, whose economies have felt. The euro zone as well as charged in the second quarter, a decline of 12.1% of its GDP, leaded by diving in even more significant savings French, Italian and Spanish.

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Updated Date: 16 August 2020, 22:33

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