Japan suffers its biggest economic slump due to coronavirus

  17 August 2020    Read: 1375
Japan suffers its biggest economic slump due to coronavirus

The Japanese economy has shrunk at its fastest rate on record as it battles the coronavirus pandemic, AzVision.az reports citing BBC News.

The world’s third largest economy saw gross domestic product fall 7.8% in April-June from the previous quarter, or 27.8% on an annualised basis.

Japan was already struggling with low economic growth before the crisis.

The figures released on Monday are a stark reminder of the severe financial impact faced by countries around the world.

Japan slipped into recession earlier this year following two successive quarters of economic contraction.

Its latest data for the April to June quarter was the biggest decline since comparable figures became available in 1980 and was slightly bigger than analysts had expected.

One of the main factors behind the slump was a severe decrease in domestic consumption, which accounts for more than half of Japan's economy. Exports have also fallen sharply as global trade is hit by the pandemic.

The latest data is the third successive quarter of declines for the Japanese economy, representing its worst performance since 1955.

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