Japan recorded its largest economic contraction during the second quarter due to the repercussions of the Corona pandemic on the business sector and consumer spending.
According to CNBC Arabia, government data showed today, Monday, a decline in gross domestic product at an annual rate of 27.8% during the period from April to June, which represents the largest decline since That comparable data became available in 1980. This was the third consecutive quarterly contraction and slightly higher than the average market expectation of a 27.2% decline.
and although the economy began to emerge from recession after the lifting of the lockdown in late May, many analysts expect any recovery in growth during the period from July to September is modest because the continued resurgence of the increase in cases of Corona reduces consumer spending.
said Takeshi Minami, chief economist at the Norenchukin Institute for Research, the big drop could be explained by the drop in consumption and exports. I expect growth to turn to the positive side during the quarter between July and September, but at the global level, the recovery will be slow everywhere except for China.
This private consumption, which represents more than half of the Japanese economy, fell by 8.2% during this quarter after the general isolation measures to prevent the spread of the Corona virus led consumers to remain in Their homes. The drop was the largest semi-annual decline on record and exceeded analysts' expectations of a 7.1% drop. Capital spending declined 1.5% in the second quarter, which is below the average market expectation of a 4.2% drop.
The data showed a decline in external demand, or exports minus imports, to a record level of three percentage points of GDP after the pandemic led to a decline in global demand.
(Amazon fun knowledge)
