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Pandemic sets Japan on course for deep recession as spending, services plunge

24 Comments
By Leika Kihara

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© (Thomson Reuters 2020.

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Do you think the J Gov should had thought of this while they kept the borders open? Or when they let all those infected people off that big boat? Or when CV 2019 started to spread all over Japan without testing? All questions on this topic.

-2 ( +10 / -12 )

This pandemic has clearly shown us that modern economies depend on huge amounts on non-essential consumption.

I hope lessons are learned and we don't go back to the sensless spiral of working to earn enough, just for the sake of feeding the consumption treadmill.

29 ( +29 / -0 )

I think this statement applies to nearly the entire world at this time.

14 ( +15 / -1 )

Look at all those overpriced fruits in the photo. Consumers in Japan will get price gouged no matter what the situation is.

20 ( +21 / -1 )

This pandemic has clearly shown us that modern economies depend on huge amounts on non-essential consumption.

Non essential food for sure as evidenced by all that farmers are destroying as restaurants stay closed. Unless everyone is really eating less which is an idea as well. But I don't want anyone to live off the land that doesn't make that choice. Your consumption is another person's job.

3 ( +6 / -3 )

I just whipped out my calculator and punched a few buttons. Indeed, Japan appears to be a minus number total.

3 ( +4 / -1 )

Even without the virus, Japan's economy was very weak due to the hit from last year's sales tax hike. The pandemic has completely destroyed any chance of a recovery," said Taro Saito, executive research fellow at NLI Research Institute.

The government has absolutely no idea how to manage a robust economy. Things were tanking before the virilant virus. Abe and friends are in a bubble that excuses 99% of the population.

10 ( +13 / -3 )

Michael MachidaToday 06:40 am JST

Do you think the J Gov should had thought of this while they kept the borders open?

This kind of post is really getting old and boring. EVERY country in the world is affected by COVID19, no country had ever dealt with anything on this scale and no county was prepared. Each has done what they could within the constraints of their respective laws, and every country is seeing their economies going down the toilet. China and the US are most prominently playing politics with the issue, but if you feel you have to whine about any government, it's China that kept this information from the world in the hopes of containing it. That delay, using their influence over the WHO, slowed down the response by other countries. Which may or may not have been much help anyway in retrospect.

9 ( +13 / -4 )

Are we ever going to get any honest, accurate numbers from the government? Silly, question, I know...

4 ( +9 / -5 )

As with the regressive sales tax increase, bailout money is flooding into big business and workers are left squabbling over the scraps that slowly filter down..

9 ( +9 / -0 )

NEWS FLASH! Japan has been in a recession for the past twenty years. The virus is just the catalyst to confirm it.

12 ( +13 / -1 )

What did they expect? That sending everybody on forced holiday for these low numbers for two months would have had no impact? Only the suspension of the international flights and mail service has plunged the business down with results to be seen until next year... Misery will hit hard Japan, since it is a country based largely on unnecessary services... you can afford them only when economy is going well.

2 ( +9 / -7 )

This pandemic has clearly shown us that modern economies depend on huge amounts on non-essential consumption.

EXACTLY.Well said.

7 ( +7 / -0 )

This kind of post is really getting old and boring. EVERY country in the world is affected by COVID19, no country had ever dealt with anything on this scale and no county was prepared. 

Some did better than others. I’m sure you’d be the first to give credit to South Korea who did so well in this crisis.

6 ( +6 / -0 )

NEWS FLASH! Japan has been in a recession for the past twenty years. The virus is just the catalyst to confirm it.

30 years to be exact.

8 ( +8 / -0 )

Tell us something we don't know.The recession will be worldwide.

1 ( +1 / -0 )

Abe only himself to blame for this hot mess. Had Abe closed all port doors to China and the rest of the world when the first cases appeared here in January until there were no more reported we would have a full-on functioning economy now. But no, all Abe and that Mori were concerned about was the Olympics and not the health of the people in this country and so you got what you got now a recession. All the government officials should be taking a permanent pay decrease taking onus for this situation and should last until the economy is on solid footing once more.

4 ( +4 / -0 )

Do the hustle beat me to it. I was thinking news flash as well, and there it was. Strange feeling. Yeah higher taxes, higher living cost taxes. No salary increases the same ole, same ole and to operate your life or to be able to squeeze away some yen in your postal saving getting harder and harder man. Japan really better get with the program and quickly. The constant tax hikes are a major bummer.

2 ( +2 / -0 )

@Michael Machida

Do you think the J Gov should had thought of this while they kept the borders open? Or when they let all those infected people off that big boat?

Few things are clear from your post. One, you didn't follow the border situation. Two, you didn't follow the cruise ship situation. Three, you did not read this article at all.

Even if the virus wasn't an issue in Japan, do you believe Japan would be immune from recession when its 3 of its biggest trade partners are all heading into a recession? Those partners are the US, China, and the entire EU.

-1 ( +0 / -1 )

The regular folk can do nothing. Good luck

1 ( +1 / -0 )

Its bad now and probably will get worse next month

That said the economy is in far better shape than either Europe, the US or Australia and New Zealand

-1 ( +1 / -2 )

Many people will be dragged (kicking and screaming) into a minimalist lifestyle...

2 ( +2 / -0 )

@zatoizugoodo I disagree. Japanese producers put an incredible amount of care to make their produce. But I get it, I think you are one of those proponents that the cheaper the better: fruits from Africa, rice from Thailand, and all the rest from China - which paradoxically, would destroy the country's economy, and reduce the purchasing power of the same consumers looking to purchase the cheaper goods, thereby nullifying the "benefits" of cheaper prices, while transferring wealth from Japan to other countries. But hey, there are many socialists like you that think money should be taken from rich countries and just distributed to poor people, because we all know that poverty is only due to the tyranny of reach countries, and it has nothing to do with the laziness of entire cultures. Enjoy your China-made veggies. See how you like your veggies (or lack thereof) at the next pandemic. LOL.

-1 ( +1 / -2 )

Japanese producers put an incredible amount of care to make their produce. But I get it, I think you are one of those proponents that the cheaper the better: fruits from Africa, rice from Thailand, and all the rest from China - which paradoxically, would destroy the country's economy, and reduce the purchasing power of the same consumers looking to purchase the cheaper goods

Don,t worry if Japanese produce is as superior as the consumer here has been told for decades than cheaper ' inferior' imports should pose no threat to it. But it would be great if the long suffering J consumer was given the choice to decide for themselves, especially all those working poor on minimum wage, short term contracts , single mum,s , majority of retirees etc etc whose ' purchasing power has been reduced ' by the decades of LDP economic mismanagment policies .

1 ( +1 / -0 )

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