Japan’s economy shrinks by 27.8 percent

Tokyo: The economy of Japan has shrinked by 27.8 percent. According to a report issued by the Japanese government on Monday, the economy has been hampered due to drop in consumption and business.

The Office of the Council of Ministers of Japan said that the GDP has come down by 7.8 percent compared to last year.

Japanese media reported this as the worst economic crisis after the Second World War. However, the Office of Council of Ministers had started keeping such records from 1980 only. Before this, the worst economic crisis was felt in 2009.

The economy of Japan, which is the third largest economy of the world, was going down before the coronavirus outbreak. Social distancing measures implemented for coronavirus control has made the situation worse.

From January to March, the economy of Japan has shrinked by 0.6 percent. In the last year, from October to December, the economy went down by 1.8 percent. Due to this, the economy of Japan went towards recession in the first quarter of 2020.