japan

Recession in Japan – bottom not yet reached

In the first quarter of 2020, the Japanese economy contracted by -0.9 percent compared to the previous quarter, slightly less than expected. After -1.9 percent in the final quarter of 2019, however, this is the first time in four years that Japan has experienced a „technical recession“ with two negative quarters in succession. While the increase in value-added tax in the final quarter of 2019 led to a slump in overall economic demand, it is now the corona crisis that has become increasingly apparent in the first quarter and is having a negative impact on the economy. Private consumption fell by a total of -0.7 percent compared to the previous quarter, with negative rates in service sectors such as restaurants and hotels as well as the retail trade slumping even more sharply under the impact of the corona pandemic. Corporate investment and production also suffered severely from the restrictions imposed…

Japan’s economy with strong downward trend

In the final quarter of 2019, the Japanese economy contracted by -1.6 percent (Q /Q), much more than expected. That overall demand would fall was unavoidable due to the increase in value-added tax on October 1, 2019. But now, despite all the measures taken by the government to cushion the VAT shock, the sharpest negative rate in five and a half years has been reported. At the end of the year, consumption alone fell by almost 3 per cent compared with the previous quarter. However, it was not only the higher consumption tax that had a dampening effect, but also the typhoons last October. November and December were unexpectedly warm, leaving winter clothing on the shelves of retailers and causing sales losses. Japan’s exports, on the other hand, were also down due to weaker demand from China, as were corporate investments. For 2019 as a whole, the economy as a…