Connect with us

Asia News

Japan Slips Into Economic Recession

Samui Times Editor

Published

on

Japan Slips Into Economic Recession | Samui Times
  • follow us in feedly

Despite being hit less hard by Covid-19 than other advanced countries, Japan’s economy has fallen into a recession just five years after recovering from its last one in 2015.

With the world’s third-largest economy, tax hikes and typhoons brought on a 1.9 percent drop in its gross domestic product in the fourth quarter of 2019-before being hit by Covid-19.

Now, this year’s first quarter decrease of 0.9% is thought to have been largely brought on by the coronavirus failure.

Even though the recent shrinkage isn’t as bad as economists predicted, they warn that it’s not over.

“We expect the worst is yet to come, with the state of emergency in Japan and the severity of the pandemic among Western nations continuing to derail the Japanese economy,” said Naoya Oshikubo, senior economist at SuMi TRUST.

Prime Minister Shinzo Abe had lifted Japan’s state of emergency for most of the country but Tokyo and Osaka have remained under the restrictions due to both cities being densely populated.

Overall, Japan has reported 16,000 Covid-19 cases with 750 deaths from the virus- a number that is quite miniscule compared to other developed countries.

In an effort to curttail the crisis’ effects, Abe has pledged to give every citizen a cash prize of 100,000 yen ($930).

The handout was part of a stimulus package worth around $1 trillion to protect jobs, strengthen the medical sector and ease the pain of working families.

Tourism, trade and most industries have come to a halt and the 2020 Olympics hosted in Tokyo, has now been delayed thus removing a much needed economical boost, which for now, will have to wait.

SOURCE:Bangkok Post

Stay updated with Samui Times by following us on Facebook.
  • Total Cases: 3261
  • Active Cases: 98
  • Recovered: 3105
  • Deaths: 58
  • Last Updated: 23-07-2020 at 04:12

Trending