The economic downturn in the country has been recorded for two consecutive quarters.
Japan’s economy entered a recession for the first time since 2015 when economic activity in this country and abroad slowed sharply due to the coronavirus pandemic.
Data released on Monday by the Cabinet Office shows that Japan’s GDP shrank by 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 added to an already stressful situation for the world’s third-largest economy, which is struggling to cope with the effects of a sales tax increase and a powerful Typhoon.
The pandemic has led to quarantines around the world as governments try to slow the spread of the virus.
Japan did not suffer much from the epidemic compared to many other countries in the world: more than 16 thousand cases of infection were detected in the country, and more than 700 people died.
However, Prime Minister Shinzo Abe in April imposed a state of emergency in Tokyo and six other prefectures over fears that the epidemic would overload Japan’s health system. Later, the state of emergency was briefly extended to the entire country.
The government 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.