Japan’s economy succumbed to recession for the first time in 4 -1/2 years, placing the country on track for its sharpest demand slump as the COVID-19 pandemic disrupts businesses and consumers.
First-quarter figures highlighted the grave impact of the coronavirus pandemic, with slump in export hitting its lowest level since the 2011 earthquake. More so, quarantine restrictions and supply chain disruptions greatly affected Japanese shipments.
Gross domestic product (GDP) figures showed an annualized 3.4% decline in the first quarter, far smaller than the median market forecast of a 4.6% drop.
Analysts rendered a grimmer outlook for the second quarter as demand dropped on the implementation of global lockdowns back in April. This would prompt policymakers to increase enforcements and financial supports as the deadly virus continues to press.