Monday, September 07, 2020 10:44:27 PM
Japan_s economy sinks deeper into worst postwar contraction
, intensifies challenge for new leader after PM Abe resigned last week
https://www.reuters.com/article/us-japan-economy-gdp/japans-economy-shrinks-more-than-expected-in-second-quarter-heightens-woes-for-new-leader-idUSKBN25Z00R?il=0
The world’s third-largest economy shrank an annualised 28.1% in April-June, more than a preliminary reading of a 27.8% contraction, revised gross domestic product (GDP) data showed on Tuesday, suffering its worst postwar contraction.
The record drop roughly matched a median market forecast of a 28.6% contraction in a Reuters poll.
The main culprit behind the revision was a 4.7% drop in capital expenditure, much biggest than a preliminary 1.5% fall, suggesting the COVID-19 pandemic was hitting broader sectors of the economy.
The data will put the new prime minister, to be elected in a ruling party leadership race on Sept. 14, under pressure to take bolder economic support measures.
Many analysts expect the BOJ hold off on ramping up stimulus for now as steps to spur demand could get people moving more freely into shops and risk spreading the virus.
“Even though restrictions to economic activity have been relaxed, some of them will remain under the new lifestyle forced upon by the pandemic,” said Yoshiki Shinke, chief economist at Dai-ichi Life Research Institute.
“It will probably take a long time for the economy to normalise and return to levels before the pandemic.”
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, intensifies challenge for new leader after PM Abe resigned last week
https://www.reuters.com/article/us-japan-economy-gdp/japans-economy-shrinks-more-than-expected-in-second-quarter-heightens-woes-for-new-leader-idUSKBN25Z00R?il=0
The world’s third-largest economy shrank an annualised 28.1% in April-June, more than a preliminary reading of a 27.8% contraction, revised gross domestic product (GDP) data showed on Tuesday, suffering its worst postwar contraction.
The record drop roughly matched a median market forecast of a 28.6% contraction in a Reuters poll.
The main culprit behind the revision was a 4.7% drop in capital expenditure, much biggest than a preliminary 1.5% fall, suggesting the COVID-19 pandemic was hitting broader sectors of the economy.
The data will put the new prime minister, to be elected in a ruling party leadership race on Sept. 14, under pressure to take bolder economic support measures.
Many analysts expect the BOJ hold off on ramping up stimulus for now as steps to spur demand could get people moving more freely into shops and risk spreading the virus.
“Even though restrictions to economic activity have been relaxed, some of them will remain under the new lifestyle forced upon by the pandemic,” said Yoshiki Shinke, chief economist at Dai-ichi Life Research Institute.
“It will probably take a long time for the economy to normalise and return to levels before the pandemic.”
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