The GDP expanded at a record rate in the past quarter
Japan seems to be recovering from the pandemic, given the promising GDP increase reported in the last quarter.
In Q3 2020, Japan’s GDP grew at the fastest pace ever recorded. The increase shows a recovery from its most significant plunge caused by the COVID-19 pandemic. The world’s third-largest economy expanded 21.4% on an annualized basis, topping the 18.9% forecasted. Also, it was the first increase reported in four quarters.
The increase came after a 28.8% plunge reported in Q2, and since 1980 when the record started. The significant surge was due to private consumption, which increased by a record of 4.7%. Moreover, the exports reported a 7% surge.
However, the economy minister Yasutoshi Nishimura announced that the country still has more than 30 trillion yen of the negative output gap. A new stimulus package is in the works to cover the gap.
For the future, analysts expect the economy to contract 5.6% in the fiscal year ending March 2021.
Following the news, the country’s benchmark Japan225 edged 0.8% higher.
Read here all about the GDP increase reported by the British Office for National Statistics!
Sources: reuters.com, japantimes.co.jp