Japan's economy is contracting, 90% of economists say in survey

Coronavirus pandemic final blow after U.S.-China trade war and sales tax hike

The coronavirus pandemic is the final blow to Japan's economy after the U.S.-China trade war and sales tax hikes. The country's post-2012 economic recovery has passed its peak, according to 90% of top private-sector economists surveyed by the Japan Center for Economic Research. (Photo by Makoto Okada)

Nikkei staff writers

March 24, 2020 16:31 JST

TOKYO -- Japan's post-2012 economic recovery has passed its peak, according to 90% of top private-sector economists surveyed by the Japan Center for Economic Research.

The domestic economy, which entered a long recovery phase in December 2012, began hitting turbulence last year: the U.S.-China trade war and the consumption tax hike in October, to 10% from 8%. The survey suggests economists now see the coronavirus as the final blow to the long recovery.