Progress in vaccinations key to economic recovery

By Tomoki Okamoto / Yomiuri Shimbun Staff Writer

14:40 JST, May 18, 2021

Japan’s gross domestic product for fiscal 2020 fell dramatically amid a failure to contain the novel coronavirus disaster.

Exports began recovering in the latter half of the fiscal year, supported by overseas demand for the manufacturing sector. Consumer spending slumped, however, as people refrained from going out.

It is unlikely to pick up in the period from April to June 2021, as a state of emergency has been declared for the third time.

In the United States, the real growth rate for January to March was 6.4% on an annualized basis due to progress in COVID-19 vaccinations and large fiscal stimulus packages.

The growth rate has been negative in Britain, but consumption has picked up since March thanks to progress in vaccinations. The growth rate is likely to turn positive in the April to June period.

Having mostly contained the pandemic, China has already returned to growth.

In Japan, vaccinations for the elderly have finally begun in earnest, but coronavirus variants are raging across the nation. Economic recovery from this summer onward will depend on whether infections can be brought under control through inoculations.