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.
Read more about how other economies have performed in Q2 here!
Sources: forexfactory.com, www3.nhk.og.jp, marketwatch.com