Japan sees worst Q2 GDP contraction in 40 years amid COVID-19

Japan's economy in April to June period shrank an annualised 27.8 per cent in real terms from the previous quarter, the sharpest contraction in 40 years as COVID-19 pandemic upended the economy, reports said on Monday.

Japan's economy in April to June period shrank an annualized 27.8 percent in real terms from the previous quarter, the sharpest contraction in 40 years as COVID-19 pandemic upended the economy, reports said on Monday. It is the worst result since comparable data became available in 1980, said NHK World, as personal consumption plunged while people stayed at home and businesses closed their doors.

In April and May, as economic activity was restricted under a state of emergency during the coronavirus outbreak. Exports also fell as global economic activity froze, resulting in a sharp decline in auto-shipments. Meanwhile, the Japan Times said many analysts have forecast that the nation's economy will rebound by over 10 percent in the July to September period from the current quarter, given the gradual resumption of economic activity after the end of the virus emergency in late May.

However, analysts also believe that it will take at least a few years for the economy to bounce back to the pre-pandemic level. (