Second biggest contraction in Japanese history

Japan shrank 4.8% in 2020, the second largest in its history.

The economy of Japan experienced the second biggest contraction in its history in 2020, shrinking 4.8 percent compared to the previous year. According to updated preliminary economic data from the Cabinet Office (Kantei) over the past year, gross domestic product (GDP) has shrunk for the first time since 2009.

According to the news of AA; After the 2008 financial crisis, GDP contracted by 5.7 percent in 2009. This ratio had been recorded as the biggest contraction since 1955. According to Kantei preliminary data, GDP volume in 2020 fell from 555 trillion yen in 2019 to 529.19 trillion yen ($ 5 trillion).

SPECIAL CONSUMPTION DECREASED

Last year, the country’s exports fell 12.3 percent and imports fell 6.8 percent. Private capital expenditures decreased by 5.8 percent and housing investments by 7.1 percent. Public investments rose 3.5 percent and central government spending rose 2.7 percent.

Private consumption, which accounts for more than half of Japan’s GDP, fell by 5.9 percent.

Private consumption caused a decline as a result of “stay at home” calls to combat the new type of coronavirus (Kovid-19) epidemic.

“POTENTIAL RESISTANCE”

Nişimura Yasutoşi, Cabinet Member Responsible for Kovid-19 Measures and Economic Recovery, said in a statement on the subject that the 2020 GDP remained serious and the last quarter displayed “potential resistance”.

According to the estimates based on experts by the Kyodo agency, negative growth is expected in the first quarter of 2021 as a result of the state of emergency (OHAL) applied in 10 states across the country, including the capital Tokyo, against Kovid-19.

Economist Kobayashi Şiniçiro from Mitsubishi UFJ Research and Consulting firm stated that although the 2020 economy contracted considerably in the second quarter, it showed more recovery than expected in the third and last quarter.

Kobayasşi said, “Since the supply of funds could not be provided, it took time for the Japanese economy to overcome the stagnation in the global financial crisis. However, this time the economy stopped due to the epidemic and it was relatively easier to revive it.” said. Kantei will announce revised annual and quarterly data on March 9.


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Source: bigpara- GÜNDEM by bigpara.hurriyet.com.tr.

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