Japan Set For Deep Recession

Above, the Wako department store at Ginza Crossing. Photo by Armand Vaquer.

Things aren't looking too good for the Japanese economy.

The coronavirus pandemic may send Japan into a deep recession.

According to the Nikkei Asian Review:

The declaration of a state of emergency in Japan has prompted economists to slash forecasts for three months from April to June. 

Analysts from domestic and international banks now all expect an annualized double-digit contraction in the second quarter, before the Japanese economy returns to a precrisis level. 

J.P. Morgan Securities forecasts the economy will shrink 17% in the quarter, BNP Paribas Securities sees a fall of 16%, and Dai-ichi Life Research Institute and Meiji Yasuda Research Institute project a contraction of more than 10%. Goldman Sachs is the most bearish, anticipating a 25% decline. 

The partial lockdown looks set to plunge Japan deep into a recession -- technically defined as two consecutive quarters of contraction.

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