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Japanese economy contracts by 4.8% in 2020

Graham Watson

15th February 2021

It seems that all developed economies have taken a significant Covid-related hit - some, notably the UK, more than others.

However, even economies that have had relatively few casualties, such as Japan have been affected.

The Japanese economy shrank by 4.8% in 2020, even though growth surged back in the second half of the year. However, the downside is that Japan's rollout of the vaccine is lagging behind the West, and many expect growth in the first quarter of 2021 to be negative.

That said, the Japanese stock market has climbed to levels last seen thirty years ago - a reflection perhaps of growing investor confidence in a post-covid macro bounce. For the first time since August 1990, the Nikkei index touched the psychologically important 30,000 mark.

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to Tutor2U, reads voraciously and is interested in all aspects of Teaching and Learning.

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