Japanese economy contracts 0.9 % the first quarter of this year
For the fourth quarter of 2019 the third largest economy had already fallen into recession by 1.9% due to the impact of typhoons
Japan entered a phase of economic recession, greater than last year, after reaching 0.9 % in the first quarter of 2020, as reported by official sources on Monday.
“We think that the worst is yet to come, with the state of emergency in Japan and the severity of the pandemic among Western nations that continue to derail the Japanese economy,” said Naoya Oshikubo, senior economist at SuMi TRUST.
Oshikubo also assured that “the uncertainty derived from the spread of the virus has also affected private capital investment, to the extent that companies reduce their spending programs.”
For his part, Prime Minister Shinzo Abe has pledged to give each citizen a cash payment of 100,000 yen (about $ 930) in order to solve the difficult situation facing the world’s third largest economy. The measure is considered an incentive to protect jobs, strengthen the medical sector and ease the difficulties of working families.
Tourism has also been severely affected with a 90 % reduction, industry and commerce have been paralyzed, and the Tokyo 2020 Olympic Games, which was considered a boost for the economy, have been postponed.
K.Villarroel
Source: Finanzasdigital
