Japan’s banks continue to struggle in a difficult operating environment which has been further hit by the Covid-19 pandemic. Gross domestic product shrank by 4.8% during 2020, representing the biggest decline since 2009.
While the country has recorded relatively few Covid cases for a developed economy, there have been several local lockdowns which have taken a toll on the economy. The postponed Tokyo Olympics, now set to take place in July and August, was expected to give the country a big economic boost. However, it seems unlikely that it will have the desired effect, with international attendees banned and restrictions on spectators.
