According to Government Data released on Monday, Japan’s economy shrank at a record of 7.8% in the April-June quarter, the worst contraction in the economy the nation has ever recorded. The third straight quarter of negative growth in Japan, which confirms a deepening recession and considering further pumping of stimulus packages into the economy of Japan.

The economy has contacted at an annual rate of 27.8%, with the fall in domestic demands by 4.8% and a drop of 18.5% in the exports of goods and plunging of services. Imports fell by 0.5%, comapred to 4.2% in the January-March period. Cabinet office said, In the previous financial year 2019-2020, Real GDP of Japan has came to 0.0%, compared to 0.3% in the fiscal year 2018.

“The fall of the Japanese economy in April and May under the state of emergency went beyond expectations. Record falls are expected in both the internal and external demand,” Yoshiki Shinke, Chief Economist at Daiichi Life Research Institute, before the release of data wrote in a note.

The world’s third-largest economy was already struggling with a stagnating economy and the impact of the hike in the consumption tax last year. The Covid-19 pandemic has worsened the situation of the economy as Japan imposed losser restrictions against the pandemic than many countries, which impacted the increase in the number of cases.

Some major economies contacted this quarter compared to other quarters including, the United States with a contraction of 9.5% and Germany with a decline of 10.1%. Analysts expect that Japan’s economy would now take a rebound and Oshikubo has projected a growth of 2.6% in the July-September quarter.