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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.

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