Honesty and hard working could not save Japan's economy from Corona crisis

Corona effect: The biggest decline in Japan's economy since 1980

AUG 17 (WTN) - Due to Coronavirus infection disease, the economy of many developed countries of the world has been badly affected. The GDP of almost all countries from the United States to Italy has been severely affected by the lockdown imposed to prevent the spread of the Coronavirus infection disease.

Actually, the lockdown, caused by Coronavirus infection disease, has left many people unemployed. At the same time, the buying capacity of people has also decreased due to the loss of jobs. And due to this, sales and production have been affected, and this has affected the economy of every country badly. Indeed, the situation is that Japan, the world's third-largest economy, has been badly hit by the Corona transition crisis.

For your information, let's know that the Japanese economy has suffered a big setback in the second quarter of the current financial year. In fact, Japan's annual GDP has declined by 27.8 percent in the April-June quarter of the current fiscal year. Let you know that this is the biggest decline in the GDP data available since 1980 in Japan. The citizens of Japan, famous for honesty, hard working, and diligence, have been facing the economic downturn, and they do not even have the income to spend.

As you know that the economy of the small country Japan is very much dependent on exports. For this reason, Japan began to remove the lockdown from the end of May due to increasing difficulties on the economic front after the long lockdown. And at the same time, Japan's economy once again started gaining momentum. But, many analysts believe that whatever will improve in Japan's economy in the July-September quarter of the current financial year will be limited because most people are spending very thoughtfully due to the new cases of Coronavirus infection. 

Indeed, this was the third consecutive quarter in Japan when the economy fell. Here, according to economists in Japan, the major decline in the GDP in the second quarter of the current financial year is due to a decrease in consumption and exports. However, these people expect GDP growth to be positive in the July-September quarter.

For your information, let's know that in most countries of the world except China, the economy is returning to a slow pace. Now, since private consumption in Japan is more than half of Japan's total economy, it has also recorded a decline of 8.2 percent in this quarter. It is clear that due to the lockdown, people were at home, and they also reduced the expenses.

However, Japan has issued a massive fiscal and monetary package to reduce the impact on the economy due to the Coronavirus infection epidemic. But, at the moment when the Japanese economy is already affected by the increase in sales tax and the ongoing trade war between the US and China, the Corona crisis has given a big blow to the Japanese economy.

Here, a 1.5 percent drop in capital expenditures has been reported in Japan compared with a 4.2 percent drop. At the same time, the difference between external demand has also decreased. And for this reason, Japan's GDP has been recorded to decline. Well, now, when the economy of Japan, an honest, disciplined, and developed country, has been severely affected by the Corona crisis, so you can imagine how much the economy of developing and poor countries would have suffered?