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Japan’s economy shrunk 5.6% in first quarter as nation battles its way through second major coronavirus wave

While it largely went through 2020 with the coronavirus contained, Japan has seen two significant waves of the virus sweep through the nation, causing consumer spending to plunge and its economy to shrink 5.6% in the first quarter, the Associated Press reports.

Through most of 2020, Japan recorded fewer than 800 coronavirus cases per day.  The number of cases started to rise steadily in November, hitting a peak of 7,800 in early January, when the nation implemented strict lockdowns.  The trend lowered over the succeeding three months to mid-March.

However, as restrictions were lifted, a new wave of infections swept the country, again peaking at 7,800 just a week ago.  Now, much of Japan has been under a state of emergency, centered around early closures of restaurants and bars, to curb the spread of the virus at places where crowds gather.

The first quarter number follows a 4.7% in economic output in Japan in 2020, largely due to the international pandemic.  And Japan is lagging other nations in vaccination rates, signalling a long struggle towards recovery for the Japanese economy.

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