Japan’s economy shrinks a record 27.8% amid virus emergency. Worst drop in data to 1955.
Japan’s Cabinet Office says the country’s economy saw a historic downturn in the April-June quarter. GDP contracted by the most in 40 years as the pandemic upended the economy.
The Cabinet Office says GDP shrank at an annualized 27.8 percent from the previous quarter in real terms. It’s the worst result since comparable data became available in 1980.
In April and May, the government declared a state of emergency.
Personal consumption plunged as people stayed at home and businesses closed their doors.
Exports also fell as global economic activity froze, resulting in a sharp decline in auto shipments.
Japan’s economy shrank at annual rate of around 27% in April-June due to COVID-19The Japanese economy was hit by its biggest economic contraction on record in the second quarter due to the ongoing COVID-19 pandemic, according to @AP citing government data released on Monday. Economy Minister Yasutoshi Nishimura said the government will take “flexible, timely” action to recover from the impact.
Japan’s gross domestic product shrank at a historic pace in the April-to-June quarter, far exceeding the previous record, which came just after the 2008 global financial crisis.
The latest quarter logged an annualized growth of minus 27.8 percent far steeper than the previous record of minus 17.8 percent in the January-to-March period of 2009. Comparable figures were first made available in 1980.