Japan slashes GDP forecasts, expects biggest contraction in decades this fiscal year

published 30.07.2020 11:22

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Private sector economists in a Reuters poll expected Japan’s economy to contract by a steeper 5.3% this fiscal year and expand 3.3% next fiscal year.

The economy is expected to rebound with a 3.4% growth in the next fiscal year ending March 2022, according to the latest estimates.

The government expects the economy to shrink 4.5% this fiscal year to March 2021 compared with January’s forecast for 1.4% growth.

TOKYO (Reuters) - Japan sharply downgraded its gross domestic product forecasts for this fiscal year, expecting the world’s third-largest economy to suffer its biggest contraction in over two decades amid the fallout of the coronavirus pandemic.

The unemployment rate meanwhile is seen rising 3.2% this fiscal year, as the coronavirus outbreak hits firms, and to ease to 2.7% in the fiscal year ending March 2022.

by Kaori Kaneko from in.reuters.com

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