Japan’s Economy Heading For A Recession

May 18, 2020 | Investopaper

Japan, the world’s third-largest economy, is headed for a recession in the first quarter due to coronavirus cuts in business services. But leaders in the United States and Europe have taken risks in easing the lockdown and restrictions in order to accelerate the economy.

Japan’s prime minister’s office on Monday forecast the country’s gross domestic product (GDP) at 3.4 percent. The office has stated that the GDP will be lower in the coming days. The economy has also shrunk as Japan’s trade has become increasingly dependent on China and the United States.

Many US states, including governments around the world, are struggling to cope with the ongoing coronavirus lockdown and open up public life. Large crowds of people have been seen in bars, restaurants and beaches in many states of the United States. They have been found to have ignored the rules of social distance issued by the states.

US President Donald Trump has said that the US economy and people’s lives will be eased as soon as possible. Peter Navarro, a senior economic adviser to President Trump, said the US Centers for Disease Control and Prevention had failed to conduct adequate studies on the coronavirus epidemic. In the United States alone, 36 million people are unemployed. Many U.S. states, which have suffered heavy losses due to the closure of businesses, have lifted home and other restrictions. States have allowed certain types of businesses to operate.

Seven new cases were reported in China on Monday, and the last time the problem was seen, Jilin province tightened social distance rules. Sanctions will be eased in other parts of China, including Beijing, where the coronavirus is not a major problem. As the local administration eased restrictions, people began to appear on the streets without masks.

According to Johns Hopkins University, about 4.8 million people have been infected with the corona and more than 315,000 have died. More than 89,000 people have died in the United States alone, and more than 160,000 in European countries.


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