Japan’s economic recovery from pandemic likely stalled in Q4

Tough times: A pedestrian walks past a closed department store in Tokyo. Underscoring the heavy toll the pandemic took on the fragile economy, Bank of Japan’s estimates in January show the economy likely shrank 5.6% in the year ending March. — Bloomberg

TOKYO: Japan’s economic growth likely moderated in October-December after rebounding from its worst post-war recession earlier in 2020, a Reuters poll showed, a sign households and companies have yet to recover from the coronavirus pandemic’s huge hit.

A state of emergency rolled out in January has inflicted further pain on consumption, stoking fears of another economic slump that could push Japan back into deflation.