The Japanese economy has officially entered a recession, for the first time in 4.5 years.
The third-largest economy in the world shrank 2.2 percent in the first quarter, following an earlier decline in the gross domestic product of 7.2 percent in the period October through December due to the effects of, among other things, the trade conflict between China and the United States.
A recession is distinct as two quarters in a row of contraction.
The figure for the period from January to March was positively adjusted, while a previous estimate assumed a shrinkage of 3.4 percent. But business investment turned out better than expected.
Yet economists warn of a “cold period” for the Japanese economy.
The corona crisis weighs heavily, and connoisseurs foresee a shrinkage of no less than 9 percent in the current second quarter.
