Economics

Japan Sinks Into Recession as Gloom Deepens for World Economy

GDP shrinks annualized 3.4% for second-straight quarterly drop
Exports sink 22% with worse expected for economy this quarter

Watch: Izumi Devalier, head of Japan economics at Bank of America, discusses the prospects for the Japanese economy and policies amid the coronavirus outbreak. (Source: Bloomberg)

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By Yuko Takeo

May 17, 2020 at 11:53 PM UTC

Updated on

May 18, 2020 at 4:13 AM UTC

This article is for subscribers only.

Japan has sunk into a recession that’s likely to deepen further as the full force of the coronavirus pandemic hits economies around the globe.

The world’s third-largest economy shrank an annualized 3.4% in the three months through March from the previous quarter as exports slid and social distancing crimped consumer spending, official figures showed Monday, confirming the second-straight quarterly contraction.