Japan on course for technical recession, economists warn

Irish Times | Feb 17, 2020 at 4:36 PM
  • Economists have warned Japan is on course for a technical recession, as the impact of the coronavirus outbreak threatens to compound a dire final quarter of 2019 that saw the economy shrink at an annualised rate of 6.3 per cent.
  • The weak output data for the final quarter of 2019 demonstrated that last autumn’s rise in consumption tax hit the economy even before this year’s coronavirus outbreak shut down tourism from China and disrupted supply chains for Japanese companies.
  • The rise in consumption tax hit the economy almost as hard as a similar increase in 2014, suggesting that stimulus measures that Mr Abe had hoped would cushion the impact of the tax rise did not work.