Annualized contraction figures were higher than the preliminary readings
Even though the economies are resuming their activity, the latest reports keep on showing the negative impact the #pandemic had.
The Japanese Cabinet Office report read that the country’s GDP contracted slightly more than estimated. For the quarter that ended in June, official data showed a 7.9% contraction. The Cabinet was looking for 7.8%. However, the numbers came below the market consensus of 8%.
These figures mark the deepest contraction that the third-largest economy in the world reported in modern history. The shrinkage would have been far worse if the central bank hadn’t eased its policy twice this year and didn’t conceive the $2 trillion #stimulus package.
The downward revision was caused by a 4.7% drop in capital expenditure, higher than the 1.5% estimated, which suggested that the pandemic hit multiple sectors of the economy.
On an annualized basis, the economy shrank 28.1%. The figures came in higher than the preliminary reading of 27.8%.
Economists are cautious when talking about a recovery. They suggest that it will be modest, given that household spending fell by more than 7.6% and the wages declined for the fifth consecutive month. They forecast a 5.6% economic contraction for the current fiscal year, with a 3.3% recovery next year.
Sources: forexfactory.com, asiatimes.com, reuters.com
Los usuarios / lectores no deben confiar únicamente en la información presentada aquí y deben hacer su propia investigación / análisis leyendo también la investigación subyacente real. El contenido adjunto es genérico y no tiene en cuenta las circunstancias personales, la experiencia de inversión o la situación financiera actual.
Por lo tanto, Key Way Investments Ltd no aceptará ninguna responsabilidad por las pérdidas de los comerciantes debido al uso y el contenido de la información presentada en este documento. Rentabilidades y predicciones pasadas no garantizan resultados futuros.