Japan's economy contracted at the fastest pace on record in the second quarter due to the restrictions imposed to rein in the spread of the coronavirus, official data showed Monday. Gross domestic product contracted 7.8 percent in the second quarter, which was the third consecutive decline, preliminary data from the Cabinet Office revealed. This was also bigger than economists' forecast of 7.6 percent fall and first quarter's 0.6 percent decrease.

On an annualized basis, GDP declined 27.8 percent versus an expected fall of 27.2 percent. Output contracted the most since the records began in 1955.

The record annualized contraction was largely driven by a 30.1 percent fall in household spending and a 56 percent decrease in exports. Government spending declined only 1 percent.

At the same time, business investment dropped 5.8 percent in the second quarter.

Japan's economy will recover more rapidly than many other large advanced economies, Marcel Thieliant, an economist at Capital Economics, said.

That reflects its strong corporate balance sheets, generous credit guarantee scheme and low reliance on tourism, the economist added.

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