Japan recovers from coronavirus-led downturn; outlook remains dim

Japan’s economy had seen the fastest pace of growth in the third quarter, recovering from its sharpest postwar recession as upbeat exports and consumption strengthened the economy’s rebound from the coronavirus pandemic.

The world’s third-largest economy recorded an annualized 21.4% contraction in the third quarter, placing higher than the 18.9% increase predicted by markets. According to government data, the figure came as the first increase in four quarters and the biggest since comparable data was released back in 1978.

While the economy expanded, analysts warned that the recovery is just a one-off from the depths of recession. In addition to this, they believe that any recovery in the economy will be moderate as an upsurge in new infections dragged the country’s economic outlook.