Emergency Extension Seen Causing Japan GDP Fall in April-June

Economy

Tokyo, May 29 (Jiji Press)--Japan's real gross domestic product is expected to fall quarter on quarter in April-June, down for the second straight quarter, due to an extension of the country's ongoing state of emergency over the novel coronavirus, a private-sector economist has suggested.

The government decided Friday to extend the coronavirus emergency for nine prefectures, including Tokyo and Osaka, until June 20 beyond the earlier scheduled expiration at the end of May.

The prolonged emergency is expected to push down private consumption by 1,242 billion yen, said Takahide Kiuchi, executive economist at Nomura Research Institute Ltd. <4307>.

The decrease of consumption is projected to reach 3,179 billion yen since late April, when the third COVID-19 emergency in Japan was issued, initially for Tokyo, Osaka, and Kyoto and Hyogo prefectures, pushing down the country's real GDP in April-June by 9 pct on an annualized basis, Kiuchi added.

It seems inevitable for Japan's real GDP to post negative growth for the second straight quarter, he said. Japan's GDP shrank a real 5.1 pct in January-March from the preceding quarter at an annual rate, according to a revised report released by the Cabinet Office on May 18.

[Copyright The Jiji Press, Ltd.]

Jiji Press