The rise of Covid causes the Japanese economy to shrink faster than expected

The summer increase in Covid-19 cases and the decline in consumer spending led to a slowdown in Japan’s economy faster than expected in the third quarter.

Domestic sales in Japan rose 3.6 percent year-on-year from July to September, according to figures changed Wednesday by the cabinet.

This was a faster run than the 3.0 percent increase reported by the government initial reading a third of GDP released in mid-November. A consortium of experts interviewed by Bloomberg expects the rate reduction to reach 3.2 percent.

The speed of the race is related to the time in Tokyo did the Olympic Games without fans and soon after, when Covid-19 infection daily went up to the big cities.

Although no closure was ordered, a number of lawsuits were initiated many restaurants and bars reducing working hours.

The sharp decline in food prices under the hood, says bond and equity retailers in Tokyo, could improve in the coming months if consumers respond similarly to the rapid rise in disease-related diseases. Omicron range.

Although Japan has often – and Tokyo in particular – managed to achieve the lowest risk in the world since the summer without disrupting public life, officials are concerned about Omicron’s differences.

Japan was fast strengthen boundaries for immigrants with the help of people, according to psychological research, which indicates hope that its tourist economy is about to reopen.

In the first estimate, secret spending was down 1.1 percent from the April quarter to June. The adjusted rate was 1.3 percent.

All exports also caused a greater upheaval than expected in the past. In the meantime, the government has planned to increase the cost of housing.

But economists warned not to overestimate the cost of living.

Takashi Miwa, an economist at Nomura Securities, said public spending as well public funds hit a third of GDP as the fifth coronavirus in the country experienced a global crisis.

He added that the cabinet had also adjusted its April-June share to 0.5 percent.

“These changes are often frustrating. It would not be right to assume that the Japanese economy is much lower than the cabinet had previously announced,” Miwa said.

On Tuesday, government figures showed that spending on Japanese households declined in the third straight month of the year in October.

But the 0.6 percent decline from the same month a year ago was slightly lower than it was in August and September. This gives rise to hope that Japan’s consumer economy will continue to prosper as plague epidemics are reduced and the number of vaccines in the country encourages customers to return to restaurants and shops.