Japan has taken the first economic hit since 2015 as it enters a partial recession with its GDP going downwards of 3.4% during the first three months since the pandemic begun. A report concedes that the coronavirus pandemic has created a dent of $8.8 trillion on the world economy. Last week, Germany slipped into recession as major sectors faced the heavy impact because of the imposed lockdown.
Japan is the only superpower who did not undergo a complete lockdown with the government only issuing a state of emergency. With the 3.4% fall in the GDP followed by a decline of 6.4% in 2019, Japan is being pushed further and further down a hole of technical recession. Furthermore, Japan lifts the state of emergency from 39 out of its 47 prefectures today which puts the economic down trail still looking gloomy at best.
The Japanese government announced a record package of $1 trillion in the second month of April in an attempt to inject stimulus into the collapsing economy for the country. With the economy still crumbling, Prime Minister Shinzo Abe promised a second stimulus package in this month.
The two main sources of income for Japan are tourism and exporting heavy goods which are strictly prohibited during an ongoing pandemic as international trade is being put on hold. Several economists even predict a higher 22% shrink in the GDP as Japan nears the second quarter. Japan is not the only country which has suffered an economic downturn, the U.S saw an economic hit of over 4.8% which was the biggest spike since the great depression of the 1930s. The second largest economy, China further saw a decline in growth in terms of 6.8% during the first three months of 2020.