Japan likely heading into technical recession due to coronavirus impact – Barclays
According to Barclays analysts led by Tetsufumi Yamakawa in Tokyo, there is an increasing chance the Japanese economy could head in to a technical recession mainly due to the negative impact of the coronavirus (Covid-19).
Key Quotes:
“Japanese real GDP contracted 3.2% on a quarterly basis, a little better than market consensus of -3.8%.
This is all pre-coronavirus and mostly due to domestic tax matters.
There is an increasing risk in first quarter weakness due to the Covid-19 impacts, and if that leads to negative growth, and it could, Japan hits a technical recession with back to back contraction.
Weaker China tourism and a decrease in trade with China is a huge headwind for Japan.
The probability of a recession there has surged to 69%.”
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
