MarketDeal24.Com – For the first time in last seven years, the governement of Japan has described its latest economic estimation of the country as ‘Bleak’ and considered the ongoing COVID-19 pandemic as ‘severe’ as coronavirus pandemic has forced many factories to go for break and the private consumption has declined accordingly.
In a monthly report disclosed on Thursday, the Japanese authorities have cut its economic forecast and omitted the word ‘recovering’ for the first time since July 2013.
The estimation downgrade paves the way for Japan to cobble together a stimulus package next month, which, sources hint, will involve spending of at least $137 billion to cushion the blow from the pandemic.
The government report painted the picture as such, “Japan’s economy is in a severe stress, extremely depressed by the COVID-19 pandemic,” the report also added. “Conditions are likely to remain severe due to the influence of the disease.”
Prime Minister Shinzo Abe is widely expected to instruct his cabinet on Friday to start working on the spending plan, which he said would be “big and powerful” enough to help the economy stage a V-shaped recovery after the virus is contained.