Japan’s Economy Shrinks at Record Annual Rate of 27.8% in Second Quarter

Japan’s economy shrank at an annual rate of 27.8%, the worst in the country’s history, in the second quarter of the year due to the economic complications from the coronavirus pandemic, according to a government report.

The Cabinet Office reported the preliminary seasonally adjusted GDP of Japan fell by 7.8% quarter on quarter. The annual rate describes what would have been if the economic fall continued for the year.

Japan has already been in an official recession as they experienced economic contraction in the fourth quarter of 2019 by 1.8%, and the first quarter of 2020 by 0.6%.

Japan’s exports were reported to have dropped at an annual rate of 56% for the quarter. Private consumption also fell at an annual rate of almost 29%.