Japan’s economy slipped into recession for the first time in more than four years, Reuters reported, citing preliminary official data.
The country’s GDP contracted an annualized 3.4 percent between January to March as private consumption, capital expenditure, and exports dropped, Reuters added.
Through the three months that ended in December, Japan’s economy witnessed a revised 7.3 percent fall. A technical recession stands for two consecutive quarters of negative growth.
It is likely that the economic situation in Japan will further deteriorate due to coronavirus lockdown measures undertaken by Prime Minister Shinzo Abe’s government, which announced a national emergency in April. Though it has now been lifted some of these measures for most regions, the restrictions that kept many businesses shuttered remain in place for big cities like Tokyo, Reuters said.
