Spending in Japan Seen Falling 1 T. Yen under 4th Emergency

Economy

Tokyo, July 9 (Jiji Press)--Consumer spending in Japan will likely drop by some 1 trillion yen mainly due to another novel coronavirus state of emergency to be put in place in Tokyo from Monday, according to estimates by economists.

Japan's gross domestic product will shrink by about 1 trillion yen and the number of jobless people will increase by between 40,000 and 55,000, according to private think tanks.

Hopes for an economic recovery that had grown thanks to progress in COVID-19 vaccinations were dampened by the new state of emergency.

The Japanese government decided Thursday to place Tokyo under a fresh state of emergency from Monday through Aug. 22 and extend the ongoing emergency for Okinawa Prefecture, southernmost Japan, until Aug. 22.

Toshihiro Nagahama, chief economist at Dai-ichi Life Research Institute Inc., expects the emergency measures to push down personal consumption by 1.2 trillion yen and increase the number of people without jobs by 55,000 in the next three months.

[Copyright The Jiji Press, Ltd.]

Jiji Press