Japan Exits Recession, Economy Grows 5 Percent Page all

KOMPAS.com – Japan finally got out of recession. In the third quarter of 2020, the Japanese economy grew 5 percent, better than economists forecast.

Reported AFP, Monday (16/11/2020), the increase in domestic demand and exports boosted Japan’s economic growth.

In the previous quarter, Japan recorded an 8.2 percent economic shrinkage, deeper than the previous estimate of 7.9 percent.

That figure is the worst for Japan, since comparable data became available in 1980. In fact, it exceeds the impact of the 2008 global economic crisis.

The economic growth in the third quarter is good news for the Japanese government, which has avoided tight lockdown measures corona virus.

This achievement also broke economists’ expectations that Japan’s economic growth in the third quarter was 4.4 percent.

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Analysts said the economic recovery is likely to continue into the last quarter of this year.

“Between July and September, economic activity in Japan returned to a somewhat normal status as the government lifted the state of emergency in the country,” said Naoya Oshikubo, a senior economist at the Sumitomo Mitsui Trust.

“Going forward, we believe that GDP figures for the next quarter will continue to show signs of recovery, albeit at a slower pace,” he added.

Japan has previously struggled with a stagnant economy and the impact of a consumption tax hike that was implemented last year before the pandemic hit.

Japanese Prime Minister Yoshihide Suga last week instructed his ministers to draft a new economic stimulus package to help the economy weather the pandemic. corona virus.

Suga issued a warning over the recent increase in coronavirus infections.

But on the other hand, he said the government’s campaign to promote domestic tourism would not stop.

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So far, Japan has recorded nearly 120,000 cases of coronavirus infection, with fewer than 2,000 deaths.

In April 2020, Japan declared a national state of emergency. But the restrictions imposed in Japan are more lenient than in many countries.

The Land of the Rising Sun does not issue a law enforcement mechanism to close businesses or keep people at home.

After cases decreased, Japan lifted its national emergency status in June 2020.

Earlier this year, the government spent heavily, including sending about $ 900 in stimulus funds to every adult and child in the country.

Japanese economist at Capital Economics, Tom Learmouth, said the effect of the stimulus was clear in the latest figures, with a 2.2 percent quarter-on-quarter increase in public spending.

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