Japan Suffers Its Worst GDP Drop On Record
Japan just reported its worst GDP drop on record shrinking 7.8% in the second quarter. This is Japan's third consecutive quarter of contraction and the worst rate of decline since modern records started being maintained in 1980.
Japan is the world's third largest economy behind the USA and China. The Covid-19 pandemic and a consequent decrease in consumer spending is blamed for the drop.
Despite the drop, Japan performed better than other major economies in the April-June period. The United States and Germany both had 10% falls, the UK had a 20.4% fall plunging it into a recession and Canada has said the expect a contraction of 12% from the previous quarter.
China, the world's second largest economy, had a return to growth in the second quarter allowing it to avoid a recession.
Despite a rebound in activity in June and July, many economists have expressed concern about the pace of the recovery.
Photo Credit: Sofia Terzoni