Japan Apirl-June GDP Seen Down 27 Pct

Economy

Tokyo, Aug. 3 (Jiji Press)--Twelve think tanks on average expect Japan's seasonally adjusted gross domestic product in April-June to have contracted a real 27.0 pct from the previous quarter at an annual rate, the biggest fall since the end of World War II.

The dismal outlook came as economic activities in the country shrank further under the government's novel coronavirus state of emergency, which was in place between April and May.

The country's GDP in January-March shrank 2.2 pct from October-December 2019 on an annualized basis, marking the second consecutive quarter of decline, according to the Cabinet Office's announcement on Monday of the second revision of the data for the first quarter of 2020.

The government agency is scheduled to release preliminary GDP figures for April-June on Aug. 17. Due to trends to stay home and business suspensions amid the virus epidemic, the real GDP is expected to log a bigger annualized drop than the 17.8 pct plunge in January-March 2009, when the global financial crisis following the September 2008 collapse of U.S. investment bank Lehman Brothers was taking a heavy toll on the economy.

Personal consumption, a major GDP component, collapsed in April-June amid the coronavirus crisis, with the 12 think tanks predicting an average drop of 7.0 pct, down for the third consecutive quarter.

[Copyright The Jiji Press, Ltd.]

Jiji Press