Bye, bye ‘Abenomics’. The Japanese economy shrank by no less than 7.8 percent in the second quarter. Japanese GDP is already more than a quarter smaller than for corona.
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Japan is also not escaping the devastating impact of corona on the economy. The world’s third largest economy shrank again by 7.8 percent in the second quarter, to a level that is 27.8% lower than a year earlier. A sad record. Never before since comparable data have been available (since 1955) has economic activity in the country declined to such a scale.
This is largely explained by the sharp drop in consumption by private individuals, which fell 28.9 percent on an annual basis. Now that there are also flare-ups of the corona virus in Japan, the Japanese are staying away from shops and supermarkets en masse. At the same time, demand abroad also remains weak, causing exports of Japanese cars and electronics to remain well below level.
As a result, the country’s gross domestic product (GDP) has now fallen back to the level it had before the introduction of ‘Abenomics’ in 2012, Japanese Prime Minister Abe’s well-known stimulus policy that left the country after two decades of deflation and economic growth. stagnation revived. That means the corona pandemic has swept all economic gains off the Japanese tables since 2012.
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