Japan returns to growth after pandemic ; Deets inside-

Tokyo, November 16: Japan's economy grew at an annual rate of 21.4 per cent in the last quarter in a recovery from the shocks of the pandemic driven by both private spending and exports. The world's third largest economy had logged three straight quarters of contraction and was already in recession by the time the crisis hit.

 

 

Japan, like the rest of the world, is suffering from the slowdown brought on by business closures, plunging tourism and travel and social distancing measures for COVID-19. On a quarterly basis, the economy grew 5.0 per cent. The annual rate measures how much the growth would have been if that had continued for a year.

 

The data showed improvements in private consumption, the main driver of growth, and exports, including vehicles and auto parts. The rebound was expected, although analysts warn it won't be enough to mark a return to normal. Growth was flat in July-September 2019, underscoring stagnant conditions even before the pandemic.

 

The administration of Prime Minister Yoshihide Suga has been trying to balance the need to curtail the infection's spread with keeping the economy going. That has prompted some criticism over policies such as the government's GoTo campaign of discounts for domestic travel that some believe may have caused surging cases in rural areas, such as on the northern main island of Hokkaido.

 

Japan has had fewer than 2,000 deaths related to COVID-19. Some companies have sunk into losses, mostly those related to travel and exports. Others like Nintendo Co. have held up relatively well, as people staying home turn to video games, the statement confirmed.