Tokyo: Japan’s economy contracted an annualised 3.4 per cent during the January to March quarter as coronavirus pandemic continues to have a significant impact, according to government data released on Monday.
It is the second straight contraction, NHK reported adding that analysts are bracing for the economy to take a bigger hit from the pandemic in the April to June quarter.
The world’s third-largest economy shrank 0.9 per cent in the January to March period compared to the prior quarter. But the drop was more dramatic — a 3.4 per cent fall — when measured as an annualised rate.
Personal consumption, which makes up more than half of Japan’s GDP, fell by 0.7 per cent. People refrained from eating out, tourist activities slowed and car sales dropped sharply, said NHK World.
Exports plunged 6 per cent as economic activity stagnated globally. Housing investment fell 4.5 per cent while corporate investment was down 0.5 per cent.
The Japanese government has already announced a one trillion dollar stimulus package to protect the economy from the fallout of the pandemic. That is equivalent to nearly 20 per cent of the country’s annual output.
Shinzo Abe’s administration is likely to announce even more measures before the month-end.(ANI)