February 16, 2021 | Investopaper
Japan’s real gross domestic product (GDP) shrunk by 4.8 percent last year compared to 2019 due to the corona virus epidemic. Preliminary figures released by the government on Monday show this. Although the Japanese economy grew in the fourth quarter of 2020, that growth was not enough to keep the economy from shrinking that year.
This is the first contraction in real GDP since 2009. At the time, real GDP had shrunk by 5.7 percent amid the global economic meltdown.
On a quarterly basis, real GDP grew by 3 percent in the October-December period compared to the previous quarter. On an annual basis, the growth was 12.7 percent.
The economy is expected to shrink in the current quarter due to a second state of emergency imposed by the government to control corona epidemic in several prefectures, including Tokyo.
Japan’s benchmark Nikkei index has risen above 30,000 for the first time in 30 years since the latest figures were released.