Japanese Government Projects Real GDP Growth Rate in Mid -4% Range This Year Due to COVID-19 and Other Factors

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[Asia Economy Reporter Kim Hyung-min] The Japanese government is forecasting that the real Gross Domestic Product (GDP) growth rate for this year, excluding the effects of price fluctuations, will record a mid-4% negative (-) figure, according to the local media Nihon Keizai Shimbun on the 29th.

This represents a significant downward revision from the +1.4% GDP growth rate projected at the Cabinet meeting earlier this year.

The overall economic contraction reflects the impact of restrictions on corporate activities due to the spread of the novel coronavirus infection (COVID-19).

Experts in Japan believe that this year’s economic recession will be more severe than in 2008, when the real GDP growth rate was -3.4% during the global financial crisis.

The Japanese government is also reported to plan to present this outlook at the upcoming Council on Economic and Fiscal Policy meeting.

Nihon Keizai added that the forecast for next year’s real GDP growth rate is expected to be in the mid-3% range, anticipating economic recovery as efforts to prevent the spread of COVID-19 infections and economic activities proceed simultaneously.

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