Japan’s economy grew in the fourth quarter of 2020, but not enough to keep the country from negative growth throughout the year.
The economy surpassed expectations of a 3% growth between October and December compared to the same period in 2019.
Growth, however, was significantly slower than in the previous quarter, when the economy grew by 5.3%.
Japan’s economy contracted by 4.8% for the year, the first contraction since 2009.
The growth figures show that Japan’s Nikkei index has narrowed to 30,000 for the first time since 1990.
New Kovid-19 stimulus in Japanese economy
Japan is leading the economic ‘zoom boom’ out of the recession
Tokyo Olympics ‘unlikely until 2021’
The world’s third-largest economy faced its worst quarter since the post-war crisis between April and June, as the global epidemic hit domestic consumption and exports.
But consumption and exports, both major drivers of the Japanese economy, also recovered in the second half of the year.
Strong global economic growth in the third and fourth quarters helped Japanese companies sell more of their products abroad.
Annual growth – assuming that growth for the quarter would be sustained for the whole year – was 12.7%, suggesting that Japan could be on track for a strong and rapid recovery.
Growth, however, is still fragile and could be hampered by restrictions aimed at restricting other waves of the Covid-19.
Takumi Sunoda, a senior economist at Shinkin Central Bank Research, hopes the recovery battle will be fought as Japan lags behind the Western economy in vaccine distribution.
The situation is such that Japan will not be able to avoid negative growth in the first quarter, he told Reuters.
There is a good chance that this year there will be a recurring cycle of coronavirus infections that will spread and control this year, which means there is no prospect of cost recovery at the expected rate.
In December, the government announced a new round of stimulus to get out of the crisis, the world’s second-largest economy.
.63. The tr yen package ($ 08 billion; 30 30,530 billion) brought Japan’s total stimulus spending to about $ 3 trillion.