The Japanese economy achieved a decline for the first time in more than a decade due to the Covid epidemic in 2020, to shrink the third largest economy in the world by 4.8% last year, This is the first annual contraction recorded since the height of the global financial crisis in 2009.

But this contraction was less than expected, ending the year strongly thanks to the recovery in exports and huge government support.

According to Arabiyanet, analysts warned that the short-term outlook may be negatively affected by the decline in domestic consumption due to the new restrictions imposed to contain the virus and continue to close the borders to tourists less before From six months before the scheduled start of the Tokyo Olympics, which was postponed last year.


However, the number was better than what was stated in a Bloomberg analyst survey, thanks to the strong performance recorded from October to December, a period during which the economy grew by 12.7% compared to the previous quarter on an annual basis. p>

The economic stimulus measures adopted by the government since the start of Covid in the framework of the $ 3 trillion package have also been an important source of support.

And the news led to the Nikkei benchmark index in Tokyo rising 2% on Monday on hopes for a trade recovery, closing above the 30,000 mark for the first time in three decades. / p>

Moody's Analytics economist Shahana Mukherjee said that better-than-expected growth in the fourth quarter of the year was driven by Japan's flexible trading position with the increase in exports and the slight rise in Private consumption.

She added that the third and severe local Covid-19 wave moderated the momentum of recovery in Japan in the last months of 2020.

She continued, but with the continued recovery of exports and the approval of the Pfizer vaccine, the coming months should witness a stronger recovery.

and, like other countries, Japan entered a deep recession in early 2020, and announced the worst quarterly growth in the second quarter of any year recorded, at a time when measures to contain the virus were stifled Economic activity weakened the most by the imposition of a consumption tax in 2019.

The slowdown in new infections allowed businesses to recover in the second half of the year, while domestic demand and net exports contributed to the improvement, according to the government.

She added that spending on housing and corporate investment has also rebounded.

NamaaZone " The Power of Knowledge"