The updated prediction is based on survey among 32 leading economists, who predicted fall of 8% in the worst case scenario. However, this would happen only if Japan had to introduce lockdown. Next year, Japan’s economy could start growing in roughly 3.3%.
The land of the rising sun has been through its second worst quarter since 1955. Its economy slumped in 27% compared to last year’s value. That represents a slightly better results compared to the US, yet it’s still much worse results than for example the United Kingdom revealed. Apart from coronavirus, Japan’s economy is affected by tensions around US-China trade relations.
On top of that, Japan dropped into deflation of 2%. Bank of Japan does not manage to leave negative territory, even though its economy is supported by massive monetary policies. According to leading Japanese economists, the government and Bank of Japan still have a lot of work to do.