Japan's economy starting to show revival after hit by Covid-19

Japan reported its largest economic growth in the third quarter after rebounding sharply from its postwar slump, as improved exports and consumption helped the country to get out of the coronavirus pandemic. Moreover, the Indian economy may be recovering faster than anticipated: Oxford Economics.

Gross-domestic product of the third-largest economy annualized at 21.4% in the three months of July-September, beating a median market forecast for an 18.9% gain and marking the first increase in four quarters, government data showed on Monday.

“Government measures like Go-To Travel subsidies helped boost consumption but what concerns me is business investment fell more than I expected,” said economist Harumi Taguchi at IHS Markit. “As the virus spreads again, companies are cutting back on hiring and, once government measures expire, low wages may weigh on consumption.” The recovery of the economy solely depends on the virus and how the country tackles it.

The economic analyst expects the economy to shrink 5.6% during the end of the fiscal year, despite showing improvements in recent months.

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