Japan’s Q3 growth forecast slashed after pandemic’s blow
Japan will experience slower-than-expected economic growth in the third quarter as the country’s consumption bears the brunt of new coronavirus restrictions implemented ahead of the Olympic Games in Tokyo.
Economists predicted an annualized 4.2% growth in the economy this quarter, lower than the 4.8% expansion projected last month. They also slashed annualized growth in the second quarter to 0.4% from 0.5%.
However, analysts expected the economy to thrive in the fourth quarter due to a strong boost in demand in the second half of the year. The forecast showed an annualized 4.6% growth, slightly higher than the expected 4.4% expansion last month.
The government is set to release its second-quarter gross domestic product estimate on August 16, following the economy’s annualized 3.9% contraction in the January-March period.
Projections for the current and next fiscal years remained at 3.6% and 2.6% growth, respectively.