Tokyo: The Japanese economy has been hit by the severe recession because of the Coronavirus pandemic, which is rampaging around the world. Japan is the first of the top three economies of the world to be hit by a recession. It is being said that the Coronavirus pandemic has resulted in the loss of nearly USD 9 trillion in the global economy.
In the first quarter of the year 2020, the Japanese economy has declined by 3.4%. Before this, the Japanese economy had declined by 6.4% in the last quarter (October-December) of 2019. The Japanese economy has slipped into recession as the growth rate has been falling for three successive quarters.
Coronavirus pandemic is the primary factor for the decline in the Japanese economy, which is the third largest in the world. The Japanese economy is mainly dependent on exports and tourism. Since the onset of the pandemic, which originated from China, the Japanese exports have come to a grinding halt. Tourism has also stopped with the closure of air and sea travel.
The Japanese government had also announced an economic relief package of USD 1.1 trillion. But as per the economists and analysts, it will take time for the results of the package to be visible. Some economic groups have claimed that the hit taken by the Japanese economy in the next quarter will be still stronger. One of the news agencies has predicted that the Japanese economy will record a decline of 22% in the next quarter.
All the major countries of the world are experiencing the ill effects of the Coronavirus pandemic. In the first quarter of 2020, the US economy has faced a decline of 3.4%. It is being said that China, the world’s second-largest economy and the origin of the Coronavirus pandemic, has also recorded a decline of 7% in the first quarter of 2020. Germany, the leading European economy, is also gripped by recession and it is believed that the United Kingdom, France, Italy, and Spain also will declare recession in the next few days.
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