COVID-19 stops 71 months of economic expansion

Japan’s GDP growth numbers have been positive since December 2012. The government led by Shinzo Abe hoped to beat the post-war record of 73 months. In addition to the virus, a hike in the consumption tax in October 2019 and a drop in exports triggered by the trade war between China and the United States are the causes.

Tokyo (AsiaNews/Agencies) – The Japanese government is set to announce that Japan is in a recession, the first time since December 2012.

GDP growth will have lasted 71 months. The government had hoped to break the post-war record of 73 months of growth.

All this remains hearsay for now, but the cabinet is expected to meet to decide the prevailing economic assessment.

According to economists, the recession has already started and cannot be fully justified by the global pandemic triggered by COVID-19.

For them, growth was hampered by the government’s decision to raise the consumption tax rate to 10 per cent in October 2018 as well as the drop in Japanese exports starting in October 2018 as a result of the US-China trade war.

• japan
• recession
• gdp
• covid-19 pandemic
• consumption tax
• exports
• us-china trade war
• Shinzo abe