Japan's real GDP growth, excluding the impact of price changes, fell 1.6 percent in the fourth quarter of 2019 compared with the previous quarter, or an annual rate of 6.3 percent, according to a quick economic statistics report released by the cabinet office. Japan fell back into negative growth four quarters later. Meanwhile, Japan's GDP grew by 0.7% in real terms and 1.3% in nominal terms in 2019.

Statistics show that all major economic indicators fell in the fourth quarter of last year, with consumption falling by 2.9 per cent. Meanwhile, equipment investment fell 3.7 percent, the first decline in three quarters, indicating a decline in manufacturing such as industrial machinery. Residential investment fell 2.7 per cent, showing a marked decline in new construction. Exports also fell 0.1 per cent, the second consecutive quarterly decline. Imports fell 2.6 percent, indicating that in addition to the decline in consumption, domestic production of raw materials, components and components also significantly reduced. Of most of the declines, only public investment rose 1.1 per cent and private inventories rose 0.1 per cent.

According to analysis, Japan's economic downturn caused by multiple factors. In addition to natural disasters such as typhoons and rainstorms, Japan's consumption tax was raised from 8% to 10% in October 2019, hitting consumption significantly. In addition, trade frictions initiated by the United States have had a serious impact on international trade, and Japanese exports have also been affected.

Japanese economic circles are also not optimistic about the economy in the first quarter of 2020. In particular, the recent outbreak of the new coronary pneumonia also showed a momentum of spread in Japan, which not only affected Japan's international tourism revenue, but also brought a blow to Japan's domestic consumption. According to Japan's dai-ichi life economic research institute expert yoshiki new home analysis, Japan's exports and domestic consumption are facing downward pressure, enterprise production growth is difficult to rule out the emergence of two consecutive quarters of negative growth of the grim situation.

In response, the government launched stimulus spending of y13.2tn in December to cushion the economy from a rise in the consumption tax. But most experts believe this alone will not stabilise the economy. The government insists the downturn is a short-term phenomenon, but politicians such as former economy minister masaaki Lin have made clear they fear a long-term downturn. The next step will be whether the government launches a new emergency economic response and what financial measures the bank of Japan takes.