Japan growth slows found in Q4 as the market shrinks 4.8% in 2020
15 February, 2021
Japan's economy grew at a slower 3 per cent found in the October to December one fourth, government info showed on Mon (Feb 15), as the coronavirus pandemic weighed on the world's third-largest economy.
The economy shrank 4.8 % in 2020 - its first total annual contraction since 2009.
Last year, virus restrictions and a 2019 consumption tax hike forced Japan into recession before a third quarter rebound to 5.3 % growth, a figure revised upwards a little on Monday.
Japan emerged from recession in November after recording its worst type of contraction since comparable figures commenced to be collected found in 1980, exceeding even the pain of the 2008-2009 global financial meltdown.
Domestic demand and net exports contributed to growth on the 4th quarter, the cabinet office said, adding that shelling out for housing and corporate investment rebounded.
While Monday's physique for the fourth one fourth was above the two 2.4 % predicted by economists polled by Bloomberg, it sounds the alarm for the initial quarter of 2021.
COVID-19 cases commenced surging in Japan on later December, prompting the federal government to impose a virus state of emergency in much of the united states including Tokyo and Osaka.
"A decline in GDP appears unavoidable in Q1 2021 because of the state of crisis declared by the federal government in several Japanese prefectures," said Naoya Oshikubo, senior economist at SuMi Trust, in a note published before Monday's figure.
Japan's virus steps are limited, with pubs and restaurants requested but not obliged to close by 8pm and working from home strongly recommended. There happen to be no blanket stay-at-home orders.
Oshikubo said the relative leniency of the emergency measures may help mitigate the expected contraction found in the first quarter.
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