Analysts expected Japan to experience the worst economic downturn since the Second World War, despite the contraction of GDP in the first quarter, less than initially thought, with growth affected The global consequences of the Corona pandemic.
According to Reuters, revised data released on Monday showed that the world's third largest economy shrank by 2.2 percent year-on-year from January to March. It is less than an initial reading of a contraction of 3.4 percent, with capital spending improving more than expected. Analysts had expected a contraction of 2.1 percent.
The revised Monday estimates confirm that Japan has already slipped into recession - on the basis of its definition of contraction for two consecutive seasons - for the first time in four and a half years, even before the general isolation measures took effect. To contain the disease in April.
A series of newly released data, which includes exports, factory production and jobs, says that Japan is facing the worst post-war downturn in this quarter, during which Prime Minister Shinzo Abe announced the emergency and his request. Citizens stay in their homes and businesses and stop and close.
Despite the lifting of the state of emergency at the end of May, the economy is expected to witness only a modest recovery in the coming months, highlighting the fatal consequences of the pandemic.
The Japanese parliament is slated to begin discussions on Monday on a second supplementary budget to fund part of a new $ 1.1 trillion stimulus package that includes loan programs and a framework for pumping liquidity into distressed companies.
Banks are doing their part to help as lending increased at the fastest annual pace ever in May, in an indication that companies are turning to loans to meet their urgent financing needs amid a sharp drop in sales. Because of the pandemic.
The interest of policymakers in the United States and Europe has shifted from responding to the crisis to efforts to boost growth, but Japan still faces difficulties in such a transformation as it continues to focus on preventing another wave From an outbreak.
The Japanese economy minister should focus primarily on supporting companies and faltering projects, and he suggested that the central bank avoid deepening negative interest rates. p>
"We are not yet in the phase of stimulating consumption and encouraging people to move more," he explained. Efforts to stimulate consumption should wait a little longer. <...
