Economists cut Japan’s economic growth forecast in Q3
Japan’s economy is seen to expand slower than expected in the third quarter as a spike in new coronavirus infections continues to disrupt the country’s economic rebound.
Based on the Aug. 2-11 poll of around 40 economists conducted by Reuters, the economy was projected to grow an annualized 2.7% in the July-September quarter. This was a downward revision from the previous growth forecasts of 4.2% in July and 4.8% in June.
Analysts expected an annualized 0.5% expansion in April-June preliminary gross domestic product, higher than an annualized 0.4% forecast last month. The quarter-on-quarter growth estimates remained at 0.1%. The government is set to release its own calculation on Monday.
Japan was forced to expand its COVID-19 restrictions during the Tokyo Olympic Games following a surge in a more contagious Delta variant. The overwhelming virus rate hurt its household spending.
The country recorded an annualized 3.9% contraction in the first quarter. It has also been trailing behind other developed countries in bouncing back from the coronavirus pandemic.