The coronavirus seems to have consumed one economy after another. Now it is chewing the Japanese one. Reportedly, Japan’s economy has hit record lows due to a virus-driven collapse of activity. For instance, according to preliminary purchasing managers data, Japan’s service sector activity tumbled to a record low of 22.8. The manufacturing PMI plunged to 37.8, indicating the strongest contraction since April 2009. "PMI data for Japan tell us that the crippling economic impact from the global coronavirus pandemic intensified in April. The decline in combined output across both manufacturing and services was the strongest ever recorded by the survey in almost 13 years of data collection," economists at IHS Markit pointed out. Therefore, judging by this data, analysts assume that Japan should brace for a prolonged stagnation. Currently, the economy is experiencing a three-quarter decline but the situation is getting only gloomier. This is why some experts project the economy to shrink more than 20% this quarter. Besides, analysts at IHS Markit believe that a state of emergency will be extended until May 6 due to delayed reaction of the Japanese government to the virus threat compared to other countries.
