TOKYO: Economists are slashing forecasts for the Japanese economy as exports are hit from overseas lockdowns and rising domestic virus cases force the Tokyo governor to request residents to stay home.
The economy is heading for its weakest period since the financial crisis, according to the latest economist projections.
Goldman Sachs Group Inc on Wednesday cut its 2020 expectations for gross domestic product to a 3.1% contraction from a 2.1% drop.
Barclays Plc said its latest projection is for the economy to shrink 2.6%.
The downgrade is “due to the triple whammy of fiscal contraction linked to the consumption tax hike, the Covid-19 outbreak and the postponement of the Tokyo Olympics, ” Barclays economists Tetsufumi Yamakawa and Kazuma Maeda wrote in the report. — Bloomberg
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