Japan’s Economy Won’t Return to Pre-Covid Levels, Says Bloomberg Economics Report

Japan’s economy won’t return to its pre-pandemic size without structural reforms needed to boost productivity and counter the impact of a shrinking population, according to Bloomberg Economics.

The Covid crisis is extending the delay in implementing reforms and that means the economy’s slow recovery from its record contraction is likely to peak in 2028 with real gross domestic product still below its 2019 level, according to Bloomberg economist Yuki Masujima. The growth trend will then switch to a steady decline with the economy ending up 16% smaller than it was in 2019 by 2050.