The third straight quarter of declines knocked the size of real gross domestic product (GDP) to decade-low levels.
While the economy is emerging from the state of depression after lockdowns were lifted in late May, many analysts expect any rebound in the current quarter to be modest as a renewed rise in infections keep consumers’ purse-strings tight.
“The big decline can be explained by the decrease in consumption and exports,” said Takeshi Minami, chief economist at Norinchukin Research Institute.
“I expect growth to turn positive in the July-September quarter. But globally, the rebound is sluggish everywhere except for China.”
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