Japan’s Demand Shortfall Estimated at 18 T. Yen in Oct.-Dec.

Economy

Tokyo, Feb. 26 (Jiji Press)--Japan’s demand shortfall, or an excess of potential supply capacity over actual demand in the economy, in October-December last year is estimated to have come to around 18 trillion yen on an annualized basis, the Cabinet Office said Friday.

The output gap stood at minus 3.3 pct in the third quarter of fiscal 2020, the government agency said.

Although a preliminary report by the Cabinet Office showed that Japan’s real gross domestic product in October-December jumped 12.7 pct from the previous quarter at an annual rate, the demand shortfall was still large due to impacts from the novel coronavirus epidemic.

The annual shortfall in demand came to some 59 trillion yen in April-June 2020, hitting the worst level since the government agency started calculating such estimates in 1980. The shortfall stood at some 34 trillion yen in July-September in the same year.

“We’re still facing a major demand shortfall, and the (economic) recovery is only halfway done,” economic revitalization minister Yasutoshi Nishimura told a press conference on Friday.

[Copyright The Jiji Press, Ltd.]

Jiji Press