Asia

Japan Reports Worst Economic Slump On Record

Japanese media called it the worst drop since World War II, but the government says a similar slide hit in 1980.

Japan Reports Worst Economic Slump On Record
Jae C. Hong / AP
Article by Bailey Vogt
SMS
August 17, 2020

Japan is reporting its worst economic slump on record.

The country's economy shrank at an annual rate of 27.8% percent in the second quarter. Additionally, its GDP fell by 7.8% in that same time period. 

Japanese media called it the worst drop since World War II, but the government says a similar slide hit in 1980.

Japan's economy was already in a recession ahead of the coronavirus pandemic, but restrictions and lockdown measures have furthered the economy's decline.

The U.S. economy contracted at a rate of nearly 33% in the quarter and the UK's dropped 20.4%.

Experts believe the world's third-largest economy will rebound in the third quarter — but gains will only be modest as coronavirus cases rise again.