Japan government expects economy to shrink

Tough time: A worker stands as vehicles bound for shipment sit parked at a port in Yokohama. The world’s third-largest economy is expected to have contracted 23.9% in the second quarter. — Bloomberg

TOKYO: Japan’s government expects the economy will contract this year as activity slowly recovers from the coronavirus crisis, with a return to growth seen next year, four government sources told Reuters.

Reflecting uncertainty over how long the pandemic would last, the government would take the unusual step of announcing several growth scenarios for 2020 and 2021 this week, based on whether the pandemic would end quickly or be prolonged, the sources with knowledge of the matter said.