Nine years of gains vanish as Japan’s GDP plunges by 7.8pc in one quarter
◆ Japan tumbled further into recession in the three months to June as its GDP plunged by 7.8pc, writes
It is the third consecutive quarterly fall in output and means the economy is more than 10pc smaller than at its peak at the end of the third quarter last year. The series of drops has effectively wiped out all of the growth achieved since 2011, including the progress of the “Abenomics” policies implemented by Japan’s prime minister, Shinzo Abe, since the end of 2012. Japan prefers to publish its GDP numbers on an annualised basis, showing what would have happened if the quarterly growth rate was maintained for a year.
With this calculation, GDP fell by 27.8pc in the quarter.
At the same time Thailand, which is more dependent on tourism, suffered a drop in GDP of almost 10pc on the quarter. This followed a fall of 2.5pc in the first three months of the year, and leaves the economy more than 12pc smaller than a year ago.