Japan Economy Shrank 2.2 Percent!

Japan Economy Shrank 2.2 Percent!

According to the Cabinet Office statement, the Japanese economy contracted 2.2 percent in the first quarter of 2020. The country's economy in the first quarter shrank 2.2 percent compared to the last quarter of last year, Japan Cabinet Office said in a statement. Despite this, it was noteworthy that the data on business investments were at a better level than expected. The Ministry of Finance said that the companies were low in participation due to the coronavirus epidemic, and evaluated the first survey results as insufficient. After updating the data covering capital expenditures, economists predicted that there would be a contraction of 2.8 percent. Nomura Securities economist Masaki Kuwahara, who made evaluations on the subject, said: "Capital investments look better than I expected. Companies must invest in R&D and information technology to overcome coronavirus. Long-term investments such as R&D did not decrease much." Economists say the contraction in the country's economy will be over 20 percent, according to the second quarter data expected to be published on the 15th of this month. If this prediction for the Japanese economy is realized, it will be the sharpest economic decline among the data published since 1955.