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17 February 2020 Before the outbreak of the coronavirus emergency, Japan's economy suffered a heavy contraction towards the end of 2019, caused by a drop in consumption triggered by the increase in indirect taxes. According to data published by the Japan Statistical Office, GDP accused a minus 1.6 percent in the fourth quarter, compared to the previous three months. But the most striking figure is that relating to the change on an annual basis: minus 6.3 percent, ballasted by minus 11 percent in relation to internal consumption.

The decrease in consumption in the fourth quarter was 2.9%, together with the slowdown in exports and corporate investments.

The figures are worse than expected and show that the stimulus measures taken to balance the fiscal sting have not been effective. All this, as mentioned, before further uncertainties about the economy with the epidemic in neighboring China were created.

Also today Singapore, one of the countries most affected so far by the contagion after China, with at least 75 confirmed cases of infection, has revised downwards the already not exuberant economic growth forecasts for 2020. Now the government expects a change in GDP between a minus 0.5% and a plus 1.5%, where previously estimated a fork between the plus 0.5% and the plus 2.5%.

The correction marks a setback for the world's third largest economy, four consecutive quarters of expansion.