Japan’s economic rebound likely dwindled in fourth quarter

According to a Reuters survey, Japan’s economic emergence from the coronavirus drag might have stalled in the fourth quarter. The prediction was rendered even after the country staged a brisk recovery from its sharpest recession earlier in 2020, indicating that households and companies were still grappling with the pandemic.

With upbeat exports minimizing some of the weakness seen in consumption, analysts surveyed by Reuters expect that the economy recorded a 2.3% quarter-on-quarter expansion from October to December. However, the forecast came lower than the 5.3% jump monitored in the third quarter.

The government’s call to implement a state of emergency in January has caused more damage to consumption. This also brought in fears that the country will face another economic slump, with the central bank forecasting a 5.6% contraction by the end of the first quarter.