The Japanese Economy Contracted by 7.8 Percent in the Second Quarter
The Japanese economy contracted by 7.8 percent in the second quarter compared to the previous quarter.
It is the most significant blow to the world’s third-largest economy in its post-war history, according to analysts. For Japan, it means the third consecutive quarter of contraction.
Japan’s economic downturn has been slightly more significant than expected, but still less severe than in many other countries.
That’s because the Asian country has not taken too restrictive corona measures.
“The decline in consumption and exports can explain the big drop,” said chief economist Takeshi Minami of research firm Norinchukin.
Consumer spending fell 8.2 percent in the quarter and exports fell 18.5 percent. “I expect growth again in the July-September quarter, but the global recovery is slow everywhere, except in China.”