Bank of Japan cut its economic view for all of the country’s nine regions for the second straight quarter, the first such downgrade since Lehman Brothers collapsed in 2008, backing signs the economy could fall deeper into recession.
The move underscores just how much damage the coronavirus pandemic has done to the world’s third largest economy.
In its quarterly report released on Thursday, the BOJ offered a bleaker view for most regions than three months ago due to recent data pointing to slumping factory output, consumption and capital expenditure.
“Exports have been shrinking further as COVID-19 has led to a plunge in global automobile sales,” said a transport machinery maker in southern Japan in the report.
The July report said all of Japan’s nine regional areas saw their economies “worsening” or in a “severe state” due to the outbreak which forced governments around the world to impose restrictions on businesses and movement earlier this year.