Japan has Bounced Back from the Pandemic with 5% Economic Growth

The economy of Japan has now bounced back from recession after the country recorded a growth of 5% in the third quarter of 2020.

Japan had seen its economy shrink during 2020 as lockdowns that were implemented due to the pandemic hit its manufacturing sector and consumer spending.

Growing economy

The world's third biggest economy is now showing signs of recovery, but some analysts cautioned that further growth is likely to be modest.

Economies in Asia are leading the way for a global economic recovery in what experts have called a "Zoom boom".

The Zoom boom refers to the increase in demand for laptops and screens as more people are required to work and study from home, and use online platforms like Zoom for classes and meetings.

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The economies in Asia are among the largest producers of laptops, communication equipment and other electronics, according to MSN.

The Asian region will also get a boost after signing a mega trade deal agreed on November 14, called the Regional Comprehensive Economic Partnership or RCEP.

Other signatories include South Korea, China, Singapore and Australia. A rise in domestic demand as well as exports have helped drive the economic growth in Japan.

The third-quarter gross domestic product or GDP or Japan grew 5% and is better than the previous quarter, which saw that the country's economy shrink 8.2%.

This steady turnaround is the fastest pace on record for Japanese economic growth. At yearly rate, assuming this economic growth continued for 12 months, it represents expansion of 21.4%.

GDP for the second quarter of the year, covering April to June, was the worst figure in Japanese economy since data became available in 1980. It is also worse than the 2008n global financial crisis.

The bounce back is welcome news for Japan's government which has avoided the tough lockdown measures seen in some other countries.

The global economy is expected to contract by 4.4% in 2020, while the United States is expected to shrink by 4.3%, according to the International Monetary Fund.

However, economies in Asian countries are leading the way when it comes to showing signs of recovery. China is on track and is expected to grow 2% before the year ends, and it is the most of any major economy.

On November 16. China released new economic data that showed its factory output grew 6.9% in October, compared to the data last year.

Earlier this year, Japan distributed two stimulus packages worth a combined $2.2 trillion, including cash payments to households and small business loans.

Japanese Prime Minister Yoshihide Suga has also instructed his cabinet to come up with another stimulus package to boost the economy of Japan that was hit by the pandemic.

Despite the latest growth, the Japanese economy is still expected to shrink by 5.6% for its full fiscal year, which ends in March 2021.

COVID-19 in Japan

According to the World Health Organization, Japan has seen a decrease in COVID-19 cases compared to the cases that the country recorded during the second quarter of this year.

Overall, Japan has a total 118,136 confirmed cases with 1,885 deaths.