Japan’s economy shrinks at record rate as coronavirus hits world’s third largest economy

JAPANESE GDP has fallen at a record rate as the world’s third largest economy suffered amid the coronavirus pandemic.

The Asian nation saw GDP fall 7.8% in the April to June quarter, or 27.8% on an annualised basis.

Japan had already slumped into recession before the virus crisis and today’s figures confirm its biggest fall since records began in 1980.

The third straight quarter of declines knocked the size of real GDP to decade-low levels of 485 trillion yen, wiping out the benefits brought by Prime Minister Shinzo Abe’s flagship “Abenomics” stimulus policies deployed in late 2012 to combat deflation.

The country’s economy has been particularly exposed by the pandemic - which has claimed 1,103 lives there - as it is a big exporter of cars, for which demand has slumped in lockdown. The data showed private consumption fell 8.2%, while overseas shipments tumbled 18.5%.

Economy minister Yasutoshi Nishimura admitted the GDP readings were “pretty severe”, but pointed to some bright spots such as a recent pickup in consumption.