Japan’s real GDP could drop by 4.5% in fiscal 2020 amid the COVID-19 acute respiratory infection, which is having a negative impact on economic activities.
On July 30, the Cabinet Office of Japan lowered its forecast for its economic prospects in fiscal 2020, but forecasts its Gross Domestic Product (GDP). “Will soon rise again to levels before the outbreak of COVID-19.”
In its latest announcement, Japan’s Cabinet Office said its real GDP could fall 4.5% in fiscal 2020 (from the beginning of April 2020 to the end of March 2021) in the context of an epidemic. COVID-19 inhalation lines are negatively affecting economic activities.
Earlier, in January 2020, when the new COVID-19 outbreak broke out in China, the Japanese government forecast the economy could grow by 1.4%.
According to the Japan Cabinet Office, due to the impact of the COVID-19 epidemic, the country’s economic growth is lower than expected.
Notably, in the months of April and 5/2020, the economy was in an extremely difficult situation due to the limitations of economic activities after an emergency was declared to control the spread of Translation COVID-19.
During the period of emergency situation due to the COVID-19 epidemic from April 7 to May 25, the Japanese government called for people to restrict going out if it is not necessary and required facilities. production-business suspend operations.
However, the Japanese economy is gradually recovering after the emergency situation was completely lifted nationwide by the end of May despite the recent increase in new cases nationwide.
For fiscal 2021, the Japanese Cabinet Office predicts that its economy will grow at a real rate of 3.4%.
If we fall into the worse scenario when the second wave of COVID-19 outbreaks occur in other countries this fall, the Japanese economy is forecast to decline by 5% in fiscal 2020 and grow 3. % in fiscal 2021.
After a period of continuous growth, since the end of 2018, the Japanese economy has begun to face difficulties due to the negative effects of the US-China trade war, increasing the consumption tax from 8% to 10. % in early October 2019, natural disasters like Hurricane Hagibis in October 2019 and floods in early July 2020, and most recently the COVID-19 epidemic.
The third largest economy in the world officially fell into recession in the first quarter of 2020.