Japan’s economy took another battering from a sales tax in the last quarter, contracting by the most in more than five years and fueling recession concernsas the widening coronavirus outbreak hits activity at the start of 2020.
The nation’s gross domestic product shrank at an annualized pace of 6.3% from the previous quarter in the three months through December, according to a preliminary estimate by the Cabinet Office Monday. October’s sales tax increase and super typhoon heavily weighed on economic activity, cooling consumer spending, business investment and production supply chains.
-6.3% QoQ (Annualized) growth?
Apparently, the Bank of Japan’s pushing their sovereign yield curve into negative territory for maturities of less than 15 years has not done the trick.
(Bloomberg) — Bank of Japan Governor Haruhiko Kuroda says the novel coronavirus is the biggest uncertainty facing the Japanese economy right now and the central bank won’t hesitate to take additional monetary policy action if needed.
Kuroda means even MORE monetary policy action.