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Japan reported the largest economic contraction since 1980

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Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
It has been a difficult Q2 for Japan

A grim day for Japan, as Cabinet Office published its report regarding the economy's state for the past quarter.

Japan’s GDP fell 7.8% in Q2 due to the pandemic. It is the worst quarterly drop since 1980. Simultaneously, it is more acute than the one reported after the 2009 financial crisis – 4.8%.  

Japan, which is the world’s third-largest economy, contracted less than the US and some of the European economies, but more than its Asian peers. The US economy shrank 9.5% in Q2, while, on average, the European economies contracted roughly 10%. 

In Asia, signs of economic improvement have already emerged. In China, the GDP rose 11.5%, while South Korea reported a 3.3% contraction. 

On an annualized basis, the GDP contracted 27.8%. But experts believe that the economy probably started to grow again, as businesses began to reopen. 

Japan225 fell by 0.8% following the report. USD/JPY traded at 106.55.

Read more about how other economies have performed in Q2 here!

Sources: forexfactory.com, www3.nhk.og.jp, marketwatch.com


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.