Economy
Japan’s Economy Experiences First Contraction in 3 Quarters
Tokyo: The Japanese economy fell at a year-on-year rate of 5.1% for the quarter of January – March. The reduction in growth was roughly matched by analysts’ expectations in an economy that is deeply reliant on private consumption expenditure.
The GDP of Japan translated into a fall of 1.3% for the quarter, slightly higher than the average predicted level of 1.2% by experts from the Cabinet Office. In addition, private consumption – the chief driver of the economy, declined lesser than expected at a rate of 1.4% for the quarter, compared to the 2.0% anticipated decline.
This follows on the heels of another crippling wave of COVID – 19 infections which, have reduced public expenditure and thereby, dealt a sizeable impact on the economy.
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