Japan’s Economy Contracted For The Third Consecutive Quarter

Japan’s economy contracted during Q2 of this year at a record annual rate of 28.1%, after adjusting from a preliminary figure of 27.8% that was estimated last month. The reading came in line with analysts’ expectations for a 28.4% contraction.

This represents the third consecutive quarterly contraction, the largest decline since 1980, as the economy was hit hard by the Corona pandemic and the consumption tax hike last year.

Consumer spending decreased during Q2 by 7.9% on a quarterly basis, exports of goods and services in Japan decreased by 18.5%, and imports fell 0.5%.