Japan's economy shrinks at record pace as pandemic hits spending

Japan was hit by its biggest economic contraction on record in the second quarter as the coronavirus pandemic crushed business and consumer spending, keeping policymakers under pressure for bolder action to prevent the recession from deepening.

While the economy is emerging from the doldrums after lockdowns were lifted in late May, many analysts expect any rebound in July-September growth to be modest as a renewed rise in infections keep consumers’ purse-strings tight.