Japan’s economy shrinks more than feared amid coronavirus curbs
- Japan’s economy shrank at an annualised rate of 5.1 per cent in the first quarter, heightening fears of another recession
- Nine prefectures, including Tokyo, are now under another state of emergency amid a fresh Covid-19 outbreak two months before the Olympics
Japan’s economy shrank at an annualised rate of 5.1 per cent in the first quarter, a government report showed on Tuesday, heightening fears of another recession as the country struggles with a slow vaccination roll-out and rising coronavirus cases.
Japan saw the first contraction in three quarters as 10 prefectures, including Tokyo, had been under a Covid-19 state of emergency from January to March.
The reading was worse than the 4.6-per-cent contraction forecast by analysts polled by the Nikkei Business Daily and came after the 11.6-per-cent growth in the last quarter of 2020.
Nine prefectures, including Tokyo, are now under another state of emergency as a fourth wave of coronavirus infections hit the regions, just about two months before the scheduled July 23 start of the Olympic Games in the Japanese capital.
Speaking at a news conference, Economic Revitalisation Minister Yasutoshi Nishimura warned, said: “We certainly have to brace for another economic downturn as we asked for strict measures during the holiday season (earlier this month) under the third state of emergency.”
The economy grew 11.6 per cent in the last quarter of 2020, marking the second straight economic expansion following a record 28.6-per-cent contraction in the April-to-June period.
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