Japans GDP contracts by 28% in second quarter
Since the war, the Japanese economy has not seen a worse downturn.

The Cabinet Office said on Tuesday that Japan's seasonally adjusted real GDP has contracted at an annual rate of 28.1%, which is worse than the preliminary value of 27.8%. Other data released Tuesday showed that cash receipts improved somewhat and that consumer spending and other business activity is expected to rebound. According to the revised figures, the economy contracted by 7.9% Q / Q, which corresponds to a decline of 7.8% in the preliminary data. Domestic demand contracted even more in the second quarter of this year as private investment fell. Public demand, which was driven by government spending, also developed worse than previously assumed. Restoring growth will be a priority as the country prepares to elect a new leader to replace Prime Minister Shinzo Abe, who is stepping down on health grounds. A vote among members of the ruling party is expected next week. The worst contraction, a 17.8% decline, was seen in the 1st quarter of 2009 during the global financial crisis. However, according to anecdotes, the recent decline is believed to be the worst since World War II. Abe has geared its "Abenomics" policy to keeping the economy going through super-easy lending and deregulation. All candidates who are to replace him are expected to maintain most of these policies.





