Due to the big spread of the Corona pandemic, the global economy was greatly affected, and the usual production and consumption activities deteriorated, so the Japanese economy was affected, as Japan recorded its largest economic contraction during the second quarter, after it was found that the gross domestic product fell by up to 27.8% Between the period from April to June, the decline was expected to reach only 27.2% ! While private consumption decreased by 8.2%, greater than the rate of forecasts known at 7.1%, and capital spending decreased by 1.5%, and – unlike the previous two indicators – this decline was less than the average expectation. A decline of 4.2% is expected. It is also worth noting that the internal demand index – the difference between imports and exports – will drop to 3 percentage points of GDP.
According to one of the Japanese economists, Mr. Takeshi Minami, that this decline can be explained by the decline in consumption and exports. He also expected that the Japanese economy will witness an improvement from August to next September.
In the same range, the benchmark Nikkei index fell 0.43% to 23189.48 points, while the Topix index fell 0.3% to 1618.57 points.
On the other hand, oil prices rose at the beginning of the week, as the price of Brent crude rose by 0.7%, equivalent to approximately 32 cents, to settle at $ 45.12 a barrel, while the price of US West Texas Intermediate crude rose by 0.8%. To reach the price of 42.36 dollars a barrel, and the reason for the high oil prices is due to the spread of news that China is intending to acquire large quantities of American crude during the month of August and September.