Japan's GDP Contracts 3.4% from January to March... Second Consecutive Quarter of Negative Growth

[Image source=EPA Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Japan's GDP growth rate for January to March this year recorded an annualized -3.4%, NHK and other broadcasters reported on the 18th. It appears that the impact of the novel coronavirus disease (COVID-19) had already affected the GDP even before Prime Minister Shinzo Abe declared a state of emergency in April.

The GDP announced by the Japanese Cabinet Office on the same day showed a 0.9% decrease compared to the previous quarter, and a 3.4% decline on an annualized basis (preliminary figure, seasonally adjusted). Consumption and private capital investment decreased by 0.7% and 0.5%, respectively, and due to the impact of COVID-19, trade declined, with exports and housing investment falling by 6.0% and 4.5%, respectively.

Japan's GDP has shown negative growth for two consecutive quarters following the impact of the consumption tax rate hike in October to December last year. The market expects Japan's economic recession to deepen further during April to June, when the state of emergency declaration was fully implemented. Bloomberg reported that analysts forecast Japan's second-quarter GDP growth rate at -21.5%, which would be the worst since 1955.

Meanwhile, Nihon Keizai reported that Japan's real GDP growth rate last year decreased by 0.1% compared to the previous year, marking a contraction for the first time in five years.

This content was produced with the assistance of AI translation services.