Japan and Europe's economic contractions weigh on global recovery
Japan's economy shrank by 5.1% in the first quarter, government data showed, putting the world's third-largest economy again at risk of falling into recession.
Where it stands: With Japan's economy shrinking by more than expected in Q1 and at risk for another contraction in Q2, the global recovery theme looks to be at risk.
- Already, the European Union said its economy shrank by nearly 2% year over year in Q1 and by 0.4% from the fourth quarter of 2020.
- India also is facing tremendous growth challenges as a result of the coronavirus pandemic.
What it means: Three of the world's five largest economies are facing significant challenges at the start of what was supposed to be a breakout year for global economic recovery after 2020's malaise.