Japan’s economy has bounced back from recession with growth of 5% in the third quarter of this year.

It had seen its economy shrink during 2020 as lockdowns hit its manufacturing sector and consumer spending. The world’s third biggest economy is now showing signs of recovery, although some analysts cautioned that further growth is likely to be modest.

Asian economies are leading the way for a global economic recovery, in what some have called a “Zoom boom”. This refers to the increase in demand for screens and laptops as more people work from home, and use online meeting platforms like Zoom.

A rise in domestic demand as well as exports have helped drive economic growth in Japan. Japan’s third-quarter gross domestic product (GDP) growth of 5% is compared to the previous quarter, which saw its economy shrink 8.2%. This turnaround is the fastest pace on record for Japanese economic growth. 

The bounceback is welcome news for Japan’s government which has avoided the tough lockdown measures seen in some other countries. The global economy as a whole is expected to contract by 4.4% this year, while the US will shrink by 4.3%, according to the International Monetary Fund.

However, Asian economies are leading the way when it comes to showing signs of recovery. China remains on track to grow by about 2% this year, the most of any major economy. “We call it the Zoom boom,” said Rory Green, an economist at research firm TS Lombard.