The coronavirus is literally digging the grave for Japan's economy. Over the past few years, the country has not been able to boost its economic growth and the pandemic has only aggravated the situation. As a result, the Japanese authorities had to revise down its economic outlook. Notably, even before that, the outlook was rather gloomy. In addition, the Japanese authorities had to lower expectations for the labor market and corporate investment. Japan was forced to introduce a state of emergency due to the coronavirus outbreak. Lockdown measures delivered a severe blow to the local manufactures. For Japan's export-oriented economy, it was like a death sentence. It has slipped into recession for the first time since 2015. The volume of supplies to the United States and Europe, Japan's main trading partners, are currently declining at a rapid pace. Household consumption is also nosediving. These two factors have only added fuel to the fire. To better the economic situation, the Japanese government has introduced an unprecedented package of stimulus measures worth $1.1 trillion. Many economists think that such a step may help revive the economy. Nevertheless, there is another pressing problem. According to the Cabinet of Japan, the unemployment rate may also spike up in the nearest future as many people have lost their jobs due to the coronavirus outbreak.
