Japan’s economy sinks deeper into contraction

Chief Cabinet Secretary Yashihide Suga, (pic) a frontrunner to become next premier, has signalled his readiness to boost spending if he were to lead the country.

TOKYO: Japan’s economy sank deeper into its worst postwar contraction in the second quarter as the coronavirus jolted businesses more than initially thought, underscoring the daunting task the new prime minister faces in averting a steeper recession.

Other data put that challenge in perspective, with household spending and wages falling in July as the broadening impact of the pandemic kept consumption frail even after lock-down measures were lifted in May.