Due to ongoing pandemic COVID-19, Japan just declared its poorest fall in GDP (Gross Domestic Product). On Monday, the Cabinet of the country described that the third biggest economy of the world decreased to 7.8 percent in the 2nd quarter compared with the early quarter. That translated to the yearly ratio of decrease of 27.8 percent, the severe one since it was noted in 1980. Although, that wasn’t the only worst quarter because there were also two previous consecutive quarters declined severely.
While comparing to the condition of other dominant economies of the world, including Germany and the United States, both contracted ten percent, and British GDP declined 20.4 percent, Japan acted better than them.
Other remaining G7 economies, the statistics company of Canada, describes that it guesses 2nd quarter economy to fall 12 percent from the early quarter.
Besides this, China ran back to growth in the 2nd quarter, which means that the 2nd biggest economy of the world cut recession after having its worst starting quarter in decades. Such as several other nations, the GDP of Japan declined massively due to the contraction of consumer spending because of the lockdown measures imposed to avoid Coronavirus, as well as decline in exports.
Japan’s consumption accounts for more than half of its economy, sank 8.2 percent for the quarter when businesses outside the country halted throughout the 6-week national emergency during April and May.
Demand from the outside countries was cut 3 percentage points in the economy when exports were contracted due to the adverse global effect of the pandemic COVID-19.
In a note, Oxford Economics wrote, while not as big as the contract seen in other dominant economies of the world, the Q2 decreased in progress nevertheless marks the 3rd adjacent quarter growth has declined, highlighting the vulnerability of Japan to more shocks.
Although Japan has confirmed 55,426 COVID-19 cases and around 1,101 deaths, said Welfare, Labor, and Health Ministry of Japan on Monday.