Japan’s economy sees its fastest rate decline in five years at the end of 2019.
The country has been hit by a sales tax rise, a major typhoon, weak global demand, and the threatening coronavirus plaguing that part of the world.
Annualized gross domestic product (GDP) showed a greater decline than anticipated, a 6.3% in October-December.
Analysts are also speculating that the coronavirus outbreak will add to the hiccup in the economy this quarter which may ultimately lead to a recession.
During the last quarter, Japanese consumer spending fell 2.9% after the country’s sales tax was raised in October to 10% from 8%.
The country was also impacted negatively by Typhoon Hagibis during the period.
Last quarter, capital spending dropped by 3.7% and exports slipped 0.1% amid the ongoing US-China trade war.
In December, Prime Minister Shinzo Abe’s government approved $120bn spending aimed at cushioning the impact of the sales tax rise.
The contraction in output was the first in more than a year and the largest since a 7.4% fall in 2014, the last time Japan raised its sales tax.
Carol May Readers Bureau, Fellow
Edited by Jesus Chan
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