Japan on brink of recession as economy contracts, virus heightens risk

[soryang]

Reuters JAPAN FEBRUARY 16, 2020 / 7:02 PM
Japan on brink of recession as economy contracts, virus heightens risk
Leika Kihara, Daniel Leussink
5 MIN READ

TOKYO (Reuters) - Japan’s economy shrank at the fastest pace in almost six years in the December quarter as a sales tax hike hit consumer and business spending, raising the risk of a recession as China’s coronavirus outbreak chills global activity.

Analysts say the widening fallout from the epidemic, which is damaging output and tourism, could have a significant impact on Japan if it’s not contained in coming months.

“There’s a pretty good chance the economy will suffer another contraction in January-March. The virus will mainly hit inbound tourism and exports, but could also weigh on domestic consumption quite a lot,” said Taro Saito, executive research fellow at NLI Research Institute...

...Japan’s gross domestic product (GDP) shrank an annualized 6.3% in the October-December period, government data showed on Monday, much faster than a median market forecast for a 3.7% drop and the first decline in five quarters.

More at link:

https://www.reuters.com/article/us-japan-economy-gdp/japans-recession-risks-grow-as-economy-skids-in-fourth-quarter-virus-clouds-outlook-idUSKBN20A0SS

[Iliyah]

1. Oh No. . .

I fear Asia economically will have major problems. I read where Russia's economy is frailing as well. UK doesn't look too healthy neither. Read that NK has an out break of the virus, haven't heard about SK.

[soryang]

2. There are 31 confirmed cases in South Korea.

Quarantine measures are having an adverse affect on their economy as well. Funds will be advanced to help businesses adversely affected. The concern in South Korea about the virus is that the three most recent cases were confirmed with no China travel, nor contacts with known cases have been reported. These are raising concern among experts about the "third wave" of the epidemic.

In North Korea, nothing is reported that I know of with respect to domestic cases. They reported in a newscast that they were 205 cases in a Chinese border province. There were widely reported rumors of 5 cases in Sinuiju on the North Korean side of the northwest border with China.

[Iliyah]

3. Prayers for Asia and the world. .

I want to travel to Seoul, South Korea in the near future.

This virus is a doozy.

[redstatebluegirl]

4. I have three friends who live there with their spouses and children.

They have loved it, but are now frightened about the economy there. I know two of them are looking for jobs in the US and Canada for options. Their kids are older now so they feel they can relocate without a lot of turmoil.

I just talked to one last week, she said they are "terrified" of the Japanese economy right now.