Japan’s economy has faltered beyond expectations in terms of an increase in the number of viruses | Business and Financial Issues
Japan’s economy fared worse than expected in the first quarter because less vaccination and the new COVID-19 vaccine hit consumers’ spending, adding to fears that the country would return to the economy.
The economy declined annually by 5.1% in the first quarter, more than the 4.6% index followed by a jump of 11.6% in the previous quarter, government figures showed Tuesday.
This reduction was mainly due to a slight decrease in half of the use of passwords because emergency response measures keep residents at home and spend money on clothes and food.
Capital spending plummeted again and export growth declined sharply, a sign that the world’s third-largest economy is struggling for drivers to make ends meet.
The embarrassing reading and the slowdown have increased the risk that Japan will be able to return to the region and return to the economy, the so-called double-digit economy, some researchers say.
“The global arms shortage has led to a decline in foreign investment, and wasted money on renewable resources,” said Yoshimasa Maruyama, chief marketing officer at SMBC Nikko Securities. “Consumption will probably remain the same, adding to the economic risk right now.”
As Prime Minister Yoshihide Suga’s administration strives to launch vaccines and viruses through a precautionary approach that could try to reduce economic damage, last week it added three more emergency units, putting half of the wealth on a much stronger ban. which occurs in the winter. Restaurants and bars in major cities are now being asked to abstain from alcohol in addition to the initial closure.
Failure to complete the ban by the end of May, as planned, could further raise concerns over the establishment of the Olympics in Tokyo. The cancellation of the Games will also lead to economic instability and increase the chances of Suga being re-appointed to the Prime Minister’s short-lived list. The country is due to hold national elections in late spring.
The larger-than-expected bond also showed a 1.4% decline in corporate sentiment while companies reduced spending on electronics and vehicles, which undermined market expectations for a 1.1% increase.
Although exports grew by 2.3 percent due to a sharp rise in global demand for automotive and electronics, growth rates fell sharply from the previous quarter of 11.7 percent, an indicator of economic woes that are still needed due to domestic weakness.
Domestic demand knocked out 1.1 percent in terms of gross domestic product (GDP), while exports have netted 0.2 percent.
“Domestic demands are weak indicating that the risk of coronavirus-induced seizures has not been eliminated at all,” said Takeshi Minami, an economist at the Norinchukin Research Institute.
While the economy and economy improved, Japan’s economy declined by 4.6% in the fiscal year that ended in March, data showed.
Money is not enough
“Undoubtedly there will be cash flows poured into the crisis to alleviate the crisis, even after much has already been done, and it is difficult to see that this will not really happen,” experts at ING wrote in their study, adding that they expect the economy to shrink in this area. “And the Bank of Japan seems to have no new ideas at the moment, so we do not expect anything new from them other than to add to what has already happened.”
Finance Minister Yasutoshi Nishimura has criticized weak GDP calculations, especially on measures to combat the epidemic, adding that the economy still has “potential” to recover.
“It is true that spending will continue to grow in April-June. But exports and exports will also benefit from external growth,” he told reporters.
Japan’s economy grew by two-thirds after the post-war war broke out in April-June last year due to an earlier epidemic.