The Japanese economy contracted by 5.1 per cent in the first quarter (Q1) of 2021, due to reduced spending because of the pandemic, as per the government’ data. According to the Cabinet Office’s preliminary seasonally adjusted GDP, household consumption decreased at an annualized rate of 5.6 per cent, while government spending took a plunge of 6.9 per cent.
Japan is currently experiencing a rise in COVID-19 cases and deaths, and the vaccination drive is amongst the slowest in the developed world. A faster vaccine rollout is the only realistic way to boost economic activity in the country and ensure pre-pandemic level growth, global media reports said quoting analysts.
The country’s economy began recovering from the damage during the pandemic in the last two quarters of 2020. It grew by 5.3 per cent in July to September 2020 over the previous quarter and recorded a 2.8 per cent growth over Q3 in the period between October and December.
In 2020, Japan’s economy shrank for the first time in 11 years to drop by 4.7 per cent, according to the Cabinet Office.