At the beginning of the year, Japan found itself in recession. In addition, the current result is worse than in the case of other advanced economies in the region – Taiwan and South Korea.
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When translating the performance of the economy in this quarter to the whole of this year, a traditional American method of analysis that Japan recently adopted, the statistics showed a decline in gross domestic product (GDP) of even a dramatic 27.8 percent.
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The current decline is mainly due to the weakening of domestic consumption, which accounts for more than half of GDP, the BBC server warned.
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However, most analysts expect the recovery in the coming quarters and the land of the rising sun to perform better than other East Asian economies.
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The current results are “devastating, but already known from monthly data,” said USB bank analyst Masamichi Adachi.
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The economies of all developed countries declined in the second half of the year. This is due to the global covid-19 pandemic and related measures. The EU economy fell by 11.7 percent, the UK’s GDP by 20.4 percent.
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