` Global growth plunging into downturn over coronavirus
The growing economic impact of the coronavirus has plunged Japan into a recession for the first time since 2015. The world's third-largest economy contracted 3.4 percent in the first quarter of 2020.

The coronavirus has devastated the global economy and caused an estimated 8 8.8 trillion in damage.

The German economy was also in crisis last week, while other major economies are in the grip of a series of lockdowns.

Japan did not carry out a complete national lockdown, but declared a state of emergency in April, severely affecting trade and supplies in the trade-dependent country.

Japan's gross domestic product (GDP) had shrunk by 6.4 percent in the last quarter of 2019, before falling by 3.4 percent in the first three months of 2020, which in turn contributed to the economic crisis in Japan. Has been affected.

Japanese consumers face a double whammy due to the financial impact of coronavirus and the increase in sales tax. In October, the sales tax was raised from 8% to 10%.

Japan has lifted the state of emergency in 39 of the country's 47 divisions, but economic prospects are not bright for the current quarter.

According to Reuters, economic analysts expect the Japanese economy to shrink by a further 22% in the April-June quarter, a record.

The Japanese government has announced a ٹ 1 trillion aid package for economic recovery, and the Bank of Japan also announced measures to boost the economy for the second month in a row in April.

Japanese Prime Minister Shinzo Abe has announced a second budget this month in the wake of the global economic downturn.

How can the Japanese get out of the economic crisis?

The Japanese economy has been stagnant for decades compared to the US and Chinese economies.

Japan is dependent on exports and has no control over overseas consumer demand, which has been severely affected by the lockdown. Sales of major Japanese brands such as Toyota and Honda have fallen sharply.

Another tourism industry that was very important in the Japanese economy has also been hit by the global epidemic because foreign tourists are not going there due to the global epidemic.

There have been 16,000 confirmed cases of coronavirus in Japan, with 740 deaths.

Comparison with other major economies

Conditions are not good for other major economies, including Japan, in the near future. But compared to the world's smaller economies, Japan is in a better position than other countries, despite suffering before the economic crisis.

Economists say the US economy is expected to shrink by 25% in the April-June quarter, while Japan's economy is expected to shrink by 22%.

In the first quarter of this year, Japan's economy declined at an annual rate of 3.4 percent, but in the same period it was 4.8 percent in the United States. This is the biggest upheaval in the world's largest economy since the 1930s recession.

In China, the world's second-largest economy, growth slowed to 6.8 percent in the first quarter.

So far, however, the US and Chinese economies have not been declared in crisis. This is done if a country's economy has a negative growth rate for two consecutive quarters. However, economists say there is a strong possibility in the next few months.


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