Monday, February 15, 2021

Japan economy shrank nearly 5% in 2020 due to Covid-19

Financial experts expect the country's recovery to struggle because it lags behind western economies in vaccine distribution.

Other News

Jangan dedah maklumat peribadi ketika melayari laman cari teman, kata SKMM

Pengguna terdedah kepada risiko jenayah siber sekiranya tidak mengambil langkah keselamatan siber dan kawalan kendiri.

Penerbitan bukan jaminan jadi profesor, kata naib cancelor UMT

Setiap permohonan kenaikan pangkat yang dikemukakan oleh ahli akademik UMT perlu melalui pelbagai proses saringan ketat, sebelum diluluskan.

Japan economy shrank nearly 5% in 2020 due to Covid-19

Financial experts expect the country's recovery to struggle because it lags behind western economies in vaccine distribution.

CAP gesa punca kerang semakin pupus ditangani segera

Sudah sampai masanya bagi pihak berkuasa beri perhatian serius mengenai masalah kerang semakin berkurangan.

Lay off arrests of undocumented migrants to ensure successful vaccination rollout, Suhakam tells govt

The human rights commission says a safe environment is needed for everyone to come out voluntarily for vaccination.

Japan’s economy surged in the fourth quarter of 2020, but it wasn’t enough to keep the country from negative growth for the year in its first contraction since 2009, the BBC is reporting.

The world’s third-largest economy suffered its worst post-war quarterly contraction between April and June, as the global pandemic hit domestic consumption and exports.

Those two key drivers of the Japanese economy also fuelled a rebound in the second half of the year.

The economy beat expectations to grow by 3% between October and December compared to the same period in 2019 but growth was slower than in the previous quarter when the economy expanded by over 5%.

The growth figures come as Japan’s Nikkei index briefly hit 30,000 for the first time since 1990.

Private consumption, which makes up more than half of the economy, rose 2.2% in the final quarter of 2020, slowing from the 5.1% increase in the previous quarter.

Stronger economic growth globally in the third and fourth quarters also helped Japanese businesses sell more of their products overseas.

Annualised growth, which assumes the quarter’s growth will be maintained for the whole year was 12.7%, suggesting Japan could be on track for a strong and rapid recovery.

But growth is still fragile and could be hampered by pandemic restrictions aimed at limiting another wave of Covid-19.

Takumi Tsunoda, senior economist at Shinkin Central Bank Research, expects the recovery to struggle because Japan lags behind western economies in vaccine distribution.

“The conditions are such that Japan will not be able to avoid negative growth in the first quarter,” he told Reuters.

“There is a high possibility that there will be a repeating cycle of coronavirus infections spreading and being contained this year, which means that consumption is not likely to recover at the expected pace.”

Follow us on Telegram for the latest updates: https://t.me/malaysianow

Subscribe to our newsletter

To be updated with all the latest news and analyses.

Related Articles

For buskers, moving online means 70% drop in income

While going digital may have saved many businesses during the MCO, performing online doesn't cut it for some.

Japan turns to cuddly toys to boost Lunar New Year sales without Chinese tourists

Japan is feeling the loss of Chinese tourists who normally come to stock up on expensive gifts for Chinese New Year.

Degree holder slogs through tough times for RM1,000 a month

The money is never enough, but as long as her family is healthy and safe, Jenny has no complaints.

GDP suffers sharpest contraction since 1998

Full-year gross domestic product shrank 5.6%, marking the worst performance since a 7.4% drop in 1998 during the Asian financial crisis.

Putrajaya eyes high-quality investors as it seeks to reverse impact from global FDI drop

Some 240 high-profile foreign projects worth over RM80 billion are being eyed, with more than half to be implemented in the coming year.