Japan Mulls Expands Covid Emergency as Economy Spooter

Closed restaurant in Tokyo's Shibuya District, 8. January.  Bars and eateries are one of the toughest companies in the guidelines.

Photographer: Kentaro Takahashi / Bloomberg

Japanese Prime Minister Yoshihida Suga looks set to expand a state of emergency for major metro areas, which will cause more pain on the economy, as he moves to stem the latest wave of Kovid-19 cases and reverse the decline in public support Let’s try.

Parliament is also expected to vote early on Monday on measures to add teeth to emergency orders, including fines for bars and restaurants that disregard instructions to close as soon as possible.

The emergency covering 11 areas, including Tokyo, Osaka and Nagoya, has helped to swiftly prevent cases of the virus endangering the world’s oldest population. Transition numbers have begun to decrease under the guidelines, with Suga’s government stating that the number of cases is worryingly high.

According to local media, Suga is planning to extend the emergency for about a month from its furrette. It is possible to remove the 7th date and the Tochigi Prefecture from the list. Report. Broadcaster FNN said the announcement could begin on Monday.

Japan’s current measures include the request that some people work from home compared to the lockout of European countries. But they have already caused a sea change in the outlook of economists. Instead of a year beginning with a slow recovery, some of them now see double-digit contraction.

Japan’s outbreak makes Suga look like a short-term premiere

The prime minister, who runs the risk of being replaced by the ruling party ahead of the election to be held by October, has seen his support slide since he took office nearly four months ago. Critics focused their attention on advancing the economy, slowing efforts to spread the infection.

The expansion of the emergency will prolong the crisis for businesses, but Suga has little choice to control the virus, preserve its leadership and survive. have hope Summer Olympic Games organized.

Kovid cases in Tokyo have started to decrease during the Emergency

Source: Tokyo Metropolitan Government

Susie restaurant owner Mamoru Sugiyama said, “The loss to the business will be huge.” Bars and eateries are among the firms hardest hit by the guidelines. He has temporarily closed his restaurant, which boasts 130 years of history in Ginza’s Swanki Tokyo shopping district.

Sugiyama said, “Some businesses are about to use their loans and I think if the emergency continues during February, companies can start to market one after another.”

A Nikkei / TV Tokyo poll suggests that the public is in favor of an expansion. In the 29–31 opinion poll, 90% of the respondents supported prolonging the emergency.

The government has stated that the emergency can end when the virus crisis eases up to stage 3 on a four-stage scale that draws on six data points.

In Tokyo, this would mean daily infections dropping below 500 and staying there. Tokyo reported 393 new infections on Monday, with first readings below 500 since December 28 and well below The city’s daily record 2,447 on 7 January.

According to the Ministry of Health, as of January 27, the capital hospital’s hospital bed occupancy rate was 73% and critical care units were of 113% capacity. Both numbers have to fall below 50% to reach Stage 3.

“We can see that the state of emergency has been affected, but it is very weak,” Yoshihito Nikki, a professor of clinical infectious diseases at the School of Medicine at the University of Shoa University in Tokyo, indicated the measures were prolonged. “The government will need to be patient at least through February.”

Japan extends state of emergency to 7 other provinces

Sanzo Street Shopping Arcade in Kyoto, January 14. The government has said that when the virus crisis subsides in Phase 3 on a four-stage scale at six crisis points, the emergency may end.

Photographer: Kosuke Okhara / Bloomberg

Japan’s parliament is set to pass two bills this week, which impose penalties on those who fail to follow official virus guidelines. This will include a fine By 300,000 yen ($ 2,866) for not following orders to close bars and restaurants, according to the website of the opposition Constitutional Democratic Party of Japan. A separate act calls for fines By 500,000 Yen on those with Kovid-19 who refuse to be hospitalized.

Since the proclamation of emergency in early January, economists warned that less stringent consultations lead to inadequacies and more damage over time than the first emergencies in April. This time, the schools remained open and saw little traffic on the roads as compared to normal times, despite repeated calls by the authorities.

Toshihiro Nagahama, an economist at the Dai-ichi Life Research Institute, observed the emergency for two months, shaving about 3 trillion yen of emergency.

Consensus among analysts that the economy is to shrink 2.5% yearly this quarter, with economists Yoshima Maruyama and Koya Miyamai at SMBC Nikko Securities Inc. now seeing a strong closing by 2020 in an 11.5% contraction in the three months through March. .

Still, the unemployment rate of only 2.9% and the year-to-date number of bankruptcies comes in, indicating that spending and debt support from the government and the Bank of Japan have so far helped to reduce the economic brunt of the epidemic. is. Suga’s administration received a third additional budget through parliament last week, offering another round for businesses, medical facilities and the economy.

The concern going forward is how long companies can hang on if an emergency is extended and consumer spending remains low.

The Chief Economist of the NASI Research Institute, Yasuhide Yajima, warns that unless there is more concrete assurances to the public, there will still be a dramatic revival of growth.

Yajima said, “Even in the event of an emergency, consumption is not going to come back until the effects of vaccination are seen.”

– Assisted by Amy Nobuhiro, Gayroyde Ready, Isabel Reynolds, and Toru Fujioka

()Updates with the latest transition figures from Tokyo.)


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