Abstract: Since the economic bubble burst in the early 1990s, Japan has not achieved real economic recovery. After 2013, Japan has a low level of longterm economic boom, but in the second half of 2019, Japanese economy began to take a downward turn. The sudden severe COVID19 pandemic has seriously damaged Japans economy, and made it even worse. The direct impact of COVID19 on Japans economy is that it has important negative effects on Japan's tourism industry, air transport, hotel, catering industry and exhibition industries; the indirect impact is that the the contraction of global economy and the break of industry chain cause the reduction of foreign demand and the stagnation of domestic production in Japan. With COVID19 epidemic waning, Japans domestic economy is on the mend, but it is still in an extremely serious situation. Moreover, the UScentric epidemic spread is still very grim, and is far from over. The world economy is expected to continue to decline. Looking to the future, Japans economy in postepidemic era is facing many challenges, and the prospect is not bright. Japans economy will shrink by about 5% in 2020, and it will fully recover to the level before the epidemic after 2022. In the medium and long term, with the progress of superaging society, the fiscal position will continue to deteriorate, labor shortage will increasingly become a restriction factor, the hopedfor potential economic growth may not arrive, and slow decline of Japanese economy is difficult to change.

Key words: Japanese economy, impact of COVID19, postepidemic era, Abenomics boom, economic outlook