Despite the historic, yet widely expected, contraction in Japan's economy for the April-June period, green shoots are evident, with observers optimistic the country has already bottomed out and is shifting into recovery mode.

However, continued virus-related weakness in private consumption and exports, the two main drivers of the world's third-largest economy, amid second waves in Japan and abroad have also sparked concerns that even if a quick recovery is achieved, a double-dip recession is looming.

Last week, government data showed gross domestic product shrank an annualized real 27.8 percent in the fiscal first quarter from the previous three months, the sharpest contraction on record, after economic activity was restricted under a pandemic state of emergency.