Photo: Kim Kyung-Hoon / Reuters
The Japanese authorities expect the worst recession in postwar history, although the decline in GDP in the first quarter was less than initially expected. About it reports Reuters.
According to revised data, in the first quarter of the third economy in the world fell 2.2 percent in annual terms against a preliminary estimate of 3.4 percent due to growth capital expenditures.
However, the majority of the affected businesses did not participate in the survey and did not provide data on investments. Therefore, the current information on capital costs used in the revision of the data is not accurate and will be updated in July.
In General, the revised indicator shows that the economy of Japan for the first time in 4.5 years has entered a recession, meaning the decline in GDP for two consecutive quarters. This happened before the introduction of restrictive measures in April.
According to experts of consulting company Oxford Economics, the effect of the coronavirus will become even more tangible in the second quarter. In this regard, prospects for 2020 is alarming. A sharp increase in loans shows that the company was on the verge of bankruptcy and needed cash to stay afloat.
To rescue economy, Japan plans to allocate an additional 1.1 trillion dollars. The total cost can reach 2.18 trillion dollars — about 40 percent of the country’s GDP.
Video, photo All from Russia.