Japan officially entered recession

By | May 18, 2020
Japan officially entered recession

The economic downturn in the country recorded for two consecutive quarters

The Japanese economy entered a recession for the first time since 2015 when economic activity in this country and abroad were sharply inhibited due to the coronavirus pandemic.

Data released on Monday by the cabinet showed that Japan’s GDP fell 3.4 percent in the first quarter of 2020. Since it also declined in the last quarter of last year, we are talking about a technical recession with two consecutive quarters of economic decline.

The COVID-19 epidemic has exacerbated an already difficult situation for the third-largest economy in the world, which is trying to cope with the consequences of raising sales taxes and a powerful typhoon.

The pandemic has led to the introduction of quarantine worldwide in response to government efforts to slow the spread of the virus.

Japan is not much affected by the epidemic compared with many other countries of the world: more than 16 thousand cases of infection have been detected in the country, more than 700 people have died.

However, Prime Minister Shinzo Abe imposed a state of emergency in Tokyo and six other prefectures in April because of fears that the epidemic will overload Japan’s health system. Later, the state of emergency was briefly extended throughout the country.

The government has announced a $ 990 billion stimulus package to mitigate the negative economic impact of the pandemic. This amount includes direct payments to households and small businesses totaling $ 55 billion.

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