Japan's economy recorded a major
decline in the second quarter (April – June) due to the COVID-19 epidemic.
Japan's Cabinet Office said on Tuesday that real gross GDP fell by 28.1 per cent year-on-year in the April-June quarter. This is worse than last month's
estimate of 27.8 per cent. The coronavirus epidemic has forced people to stay
home. In addition, restaurant-stores are closed. The travel and tourism
business has come to a standstill. This has affected global economies and many
companies. Japan's economy is dependent on exports. Exports have been badly
affected due to the lockdown. This has led to a major decline in Japan's GDP.
Japan's Prime Minister Shinzo Abe has resigned due to health reasons. After
this, the process of choosing a new Prime Minister is going on. Party members
can vote on this next week. The Cabinet Office says that increasing growth will
be a priority after the new PM is elected.
According to data released by the
Cabinet Office, there has been a slight improvement in cash income. With the
Corona epidemic coming under control, a sharp improvement in consumer spending
and other business activities is expected. Data shows that growth is struggling
for a boom. The economy declined by 7.9 per cent on a quarterly basis.
According to the Cabinet Office, the
government has started keeping a comparative record of GDP since 1980.
According to this, in the financial crisis in 2009, there was a decline of 17.8 per cent in GDP. This was the first biggest decline. Now in the second quarter
of 2020, there has been a big decline from the first quarter of 2009. However,
excluding government records, this is the biggest decline since World War-2.
Japan was engulfed by the recession
in the first quarter of this year. In the first quarter, Japan's GDP fell 2.3
per cent year-on-year. Whereas in the last quarter of last year there was a
decline of 7 per cent. In general, two consecutive quarterly declines are
considered a sign of a slowdown. Growth was flat in the July-September quarter of
last year.
The US economy has recorded the
largest decline in recorded history due to the coronavirus epidemic. The US
Commerce Ministry, in its second estimate for the April-June quarter, released
on Thursday said the economy had declined 31.7 per cent. In the first estimate,
the government said in late July that the US economy had fallen by 32.9 per cent in the June quarter. The biggest quarterly decline in US economy records was in
1958. At that time the economy had fallen by 10 per cent. America has started
keeping a record of GDP growth since 1947.
Canada's gross domestic product (GDP)
declined by a record 11.5 per cent in the second quarter of this year (April –
June) due to the coronavirus epidemic. In the first quarter of this year
(January-March), Canada's GDP declined by 2.1 per cent. According to the law of
economics, after the economy has fallen for two consecutive quarters, Canada is
stuck in an economic recession. This is the largest decline in GDP since Canada
recorded its first quarterly figures in 1961.
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