JAPAN’S ECONOMY SINKS 3.4% AS EXPORTS SPUTTER

Japan’s economy has gone underwater for the first time in 4-1/2 years in the first quarter of 2020, with Japan possibly experiencing its worst postwar slump exacerbated by the pesky COVID-19 pandemic.

In a story written by Leika Kihara and Tetsushi Kajimoto for Reuters on May 18, 2020, Japanese exports plunged the most since the devastating March 2011 earthquake as global lockdowns and supply chain disruptions hit shipments of Japanese goods.

“Analysts warn of an even bleaker picture for the current quarter as consumption crumbled after the government in April requested citizens to stay home and businesses to close, intensifying the challenge for policymakers battling a once-in-a-century pandemic.” Kihara and Kajimoto wrote.

“It’s near certainty the economy suffered an even deeper decline in the current quarter,” said Yuichi Kodama, chief economist at Meiji Yasuda Research Institute. “Japan has entered a full-blown recession.” #coronavirusimpact #COVID19