How Will Japan’s Economic Slowdown Impact Sony’s Stock?
Sony's (NYSE: SNE) stock recently dipped after Japan revealed that its GDP fell 6.3% in the final quarter of 2019, marking its steepest drop in five years. The decline was attributed to a sales tax hike, a destructive typhoon, and sluggish trade.
Japan's GDP is expected to contract again in the first quarter, as the coronavirus outbreak disrupts its tourism industry and impacts companies that rely on Chinese supply chains and consumers. Those two consecutive quarters of declines would signal a recession -- and could spell trouble for top Japanese companies like Sony.
Shibuya Crossing, Tokyo. Image source: Getty Images.
Source Fool.com
